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SVB Depositor Bailout

Who will ultimately pay the costs of bailing out the tech companies that deposited money with the failed Silicon Valley Bank?

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President Biden claims that his administration's bailouts of tech companies that deposited money with Silicon Valley Bank and other failed banks "won't cost taxpayers a dime" because it will all be "paid for with the fees that banks pay into the Deposit Insurance Fund." This implies that bank stockholders will pick up the tab. However, the fees that banks pay into the Deposit Insurance Fund are borne in part or whole by consumers, just like other corporate fees and taxes. This typically manifests in the form of higher consumer prices.




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