Except that’s still not really what happened. The depositors are being made whole with a mix of SVB’s capital and funds previously paid to the FDIC by the banks, and pooled for related purposes. Taxpayers aren’t footing the bill.
It’s not meaningfully a bailout. Certainly, it’s different from 2008 in an important way.
Again, we can talk about “bailing out” depositors, if you really want to use that word, but let’s not be misleading.
Even if the transaction turns out to be cash-neutral for the government - or even provides a small profit, as with TARP - it is still providing very considerable resources in the form of liquidity, coercive muscle - and sheer gravitas.
It’s not meaningfully a bailout.
Tomato, Tomah-to.
In the same ways as if you go driving cross country with inadequate money in the bank (and inadequate insurance), and then have a major breakdown -- forcing you to ask your parents or your friends to wire you money -- they are unambiguously bailing your sorry ass out, even you promise to sell your precious vinyl collection that pay them back, once you get home.
It’s not meaningfully a bailout. Certainly, it’s different from 2008 in an important way.
Again, we can talk about “bailing out” depositors, if you really want to use that word, but let’s not be misleading.