The FDIC's long game
As anyone who’s ever dealt with an insurance company knows: They like to minimize the amount they have to pay out in claims. The FDIC is no normal insurance company — but its actions last weekend are entirely consistent with a desire to save as much money as possible.
Why it matters: The FDIC on Sunday decided to bail out a set of Silicon Valley millionaires and billionaires who had substantial uninsured deposits at Silicon Valley Bank. That's great for the plutocrats in question — but it also turns out to be great for everyday Americans who pay through various bank fees for the FDIC insurance fund.
How it works: As depositors across the country watched SVB depositors bewailing their putative losses, they started to worry about their own money.
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