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I am also confused about where the money is coming from to cover SVB’s losses, if not from the taxpayer.

1. FDIC reserve fund (from the premiums they collect)

2. "a special assessment" aka a tax on member banks directly

3. SVB’s assets. They actually have enough assets to pay, but it will take time for those bonds to mature.

Having to wait for the bonds to mature is arguably a haircut. Otherwise you can for example, justify a 10% haircut by saying that you can take that 10%, buy some 5 year treasuries with it, and get back your money once those bonds mature.

> 2. "a special assessment" aka a tax on member banks directly

And if some bank doesn't have enough to cover everything they can get freshly printed USD courtesy of BTFP: https://www.wsj.com/livecoverage/stock-market-news-today-03-...

The FDIC can tell banks they need to pay more into it to cover the losses.

The pay is then collected from depositors by banks.

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