SVB, Signature Bank Depositors to Get All Their Money as Fed Moves to Stem Crisis - WSJ

The government’s bank-deposit insurance fund will cover all deposits at the two banks, rather than the standard $250,000. Federal regulators said any losses to the government’s fund would be recovered in a special assessment on banks and that the U.S. taxpayers wouldn’t bear any losses.

“Special assessment on banks” is code for a one-time additional charge to all FDIC insured banks. In other words, all US banks will kick in to cover the uninsured depositors.

Banks will then turn around and pass this mandated cost-of-doing-business on to their customers in the form of higher interest rates, higher fees, and lower deposit rates.

Genius! We must all band together and save the start-ups who knew they were uninsured, but bravely carried on into the great unknown.