The assets will take a few years to fully wind down but are likely to payoff anywhere from 80-98% so the actual haircut won't be that large. The insurance fund will float the money until final resolution, then increase insurance premiums if needed to makeup the difference.

The rest of the industry is paying. "Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.". RIP the $250k FDIC limit, I guess.

“Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law.”

I take Treasury statements at their word, and I'm not sure why you wouldn't too. We'll find out the details soon enough.

Dipping into the FDIC pool beyond what's needed to cover the $250k. That, combined with the ability to sell of SVBs assets must give confidence to cover all deposits without burdening taxpayers.

My understanding is that all of the assets are still there. Moreover, many of them were expected to be safe for long term holding, such that anyone that can play a long game with a diversified portfolio could welcome these assets onto the books.

Problem, of course, is that they were some massive assets and adding them to a book without unbalancing it is going to be difficult to do.

You know what they say, if it looks like shit and smells like shit. It's shit.