“No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer.”
https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm
Discussion
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It's like the foreign central bank facility the fed offers. They get to cash in their bonds at full 100% value because the fed and treasury can't lose, they will certainly hold to maturity. The 1 year loans just keep getting rolled forward as long as needed.
Technically, it's not tax payer money if the bonds are held to maturity.