3min chapter

Hidden Forces cover image

What the Bailout of SVB Means for the Fed's Fight Against Inflation | Steven Kelly

Hidden Forces

CHAPTER

Is the FDIC a Systemic Risk?

The FDIC stepped in and rescued the uninsured depositors of Silicon Valley Bank. The Fed has to sign off on the FDIC's use of the systemic risk exception, so they really see this as systemic. Once something is systemic, we no longer have the tools; it'll be too late. We're not going to wait until the next bank,. whether it's called US bank, called PNC, some bigger bank, some more systemic banks are already in receivership.

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