The FDIC has taken SVB in receivership and will manage its resolution. This has happened hundreds of times over the last decades and there is a well tested game plan as I mentioned earlier. Thread.

The bank closes Friday (done) and folks will not have access to their deposits over the weekend.

During that time the FDIC will figure out whether the bank will be fully wound down or sold to another bank in whole or parts. We will learn more soon on that.

Either path will result in insured depositors having full access to their 250k on Monday.

Then the FDIC has already said it will make an initial payment for uninsured deposits next week as well if it is in receivership. That’s a positive sign.

If the bank remains in receivership and wound down, additional payments are made based on the asset sales that eventually come.

The best path is to find a buyer this weekend for the assets and transfer the deposits and assets quickly.

It is notable that the bank was halted before trading and the fdic closed it at noon. That suggested the fdic was already there and ready.

Suggests the fdic and fed already have a good sense of what is going on at the bank and have run the numbers.

Nothing is surprising to them and they likely have already done some resolution work. Overall promising but by no means certain.

Odds are we will all learn a lot more over the weekend. The fed and fdic will want to instill confidence in the market and limit knock on impacts before the futures open on Sunday night. It’ll be a long weekend.

Feels like fall of 08 a little. But with much less panic. These regulators have had 15 years working on this. There is a lot more expertise and experience. The stakes are better known. All that is a likely positive for how this gets resolved svb depositors and the system.