The comparison between SVB and FTX was a light bulb moment for me. Why and how did the FDIC suddenly insured all that money? I think they have delayed again the collapse of the financial system like they always do. I'm all in for alternatives especially when the legacy system is in shambles.
You are viewing a single comment's thread from:
While FDIC was in the room when they collaborated on solutions, it wasn't necessarily FDIC insurance paying, but rather they created a some sort of Fed entity/process where banks at risk could borrow money or convert their bonds into cash. This way all depositors would be able to withdraw their money.
Thanks for the clarification. I understand it much better now.