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Wall Street — not taxpayers — will pay for the SVB and Signature deposit relief plans


WASHINGTON — Plans announced Sunday to fully reimburse deposits made in the collapsed Silicon Valley Bank and the shuttered Signature Bank will rely on Wall Street and large financial institutions — not taxpayers — to foot the bill, Treasury officials said.”For the banks that were put into receivership, the FDIC will use funds from the Deposit Insurance Fund to ensure that all of its depositors are made whole,” said a senior Treasury Department official, who spoke to reporters Sunday about the plan on the condition of anonymity.related investing news”The Deposit Insurance Fund is bearing the risk,” the official emphasized. “This is not funds from the taxpayer.”The Deposit Insurance Fund is part of the FDIC and funded by quarterly fees assessed on FDIC-insured financial institutions, as well as interest on funds invested in government bonds.The DIF currently has over $100 billion in it, a sum the Treasury official said was “more tha …

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