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Thanks! Still not clear to me if that extends beyond $250K or just not counting against an existing account held there, though. But as mentioned above they probably can just liquidate what they just bought if they need to meet large portion of deposits withdrawn. And the par value repo thing for stuff they already have makes sense would mitigate a run causing insolvency.

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> Still not clear to me if that extends beyond $250K

It does not. The deposit insurance limit was $250k before the svb collapse, it was unlimited while the (government) fdic held your account, and now it has been transfered back to a private institution it is 250k again.

Only after bank failure can you truly determine what your FDIC insurance limit was. Per Yellen's own admission it is decided by several committees after the bank fails how to retroactively apply the variable insurance, depending on whether they deemed it "systematic." Of course if the depositors are mostly politically connected VCs or investments of politically connected VCs you probably have a better shot of being deemed systematically important.

"it always was"

This is the simple difference between a guaranteed minimum and a discretionary maximum.

In practice, FDIC covers at least 250k

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