FDIC

After the depression the Federal Deposit Insurance Company (FDIC) was created to protect bank depositors from loss if a bank went broke. This started out at $5,000 per depositor and was raised many times over the years and stands today at $250,000 but all that changed in a big way yesterday when President said the government will cover all loses at the SVB. The FDIC account is funded by banks who are charged fees. The current balance in this account is $128 billion. Under the plan announced by federal regulators, $175 billion in deposits will be backstopped by the federal government. This means the account is underwater and banks must chip in to bring the account up. Will the banks take these new fees from their profits or will they increase fees to customers.