Navigating the Challenges of Bank Failures and Depositor Protection

The FDIC has promised to make all depositors whole at failed Silicon Valley Bank and Signature Bank, regardless if they are insured or not. However, if all depositors decided to take their money today, the Federal Deposit Insurance Corp. doesn’t appear to have enough money in its insurance fund to pay everybody off. But the two failed banks hold billion of dollars in Treasuries and loans that can be sold and used to make many of the depositors whole.