> President Joe Biden sought to assure customers of Silicon Valley Bank and Signature Bank on Monday that their money was safe -- insured by the Deposit Insurance Fund
There's a fundamental misunderstanding here on what happened with SVB.
The Federal Deposit Insurance Fund insures up to $250k. There was never a question on if that money was safe. Everyone knew it was the entire time.
The question was what would to accounts & funds over $250k? Those *aren't* insured by the FDIC. A lot of companies had balances far in excess of $250k to pay bills & make payroll. Would *those* uninsured funds be protected?
The news on Friday was the FDIC said, yes, it would make sure those funds are covered too. (They also made clear it won't be covered via taxpayer dollars, but that's a different topic.)
What Biden is trying to make clear is that:
- If you were a bank *customer*, your money -- insured or not -- is fine
- If you were a bank *investor*, you lost your money