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FDIC has about ~225 billion to backstop failing banks. This is sufficient to backstop 1-2 failing banks, depending on the size. However, if a system breakdown happens, the FDIC won’t be able to safe most depositers. Only if the Fed print prints a ton of money, this would be possible.

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radii 2y ago

It looks like in the SVB case, a special type of loan arrangement does the heavy lifting of the "printing money" part

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