Is This a Bailout?

SVB was bailed out by the government to protect its depositors and other small banks that were at risk of failure. The FDIC runs a deposit insurance fund, which is backed by the treasury in the event that it suddenly runs out of money. If they can't make people whole, based on just selling off the assets, they will dip into what's called the Deposit Insurance Fund (DIF) Sixty-five years later, SVB still socializes losses under $250,000. Under 250, it stillsocializes losses. But that's a deal we've all made, right? That's why you understand. They've changed the rules on this.