FDIC Mistakenly Released List of SBV Customers Bailed Out by Biden Admin’s Backstop

Objectivity 4.5 | Credibility 4.8 | Relevance 4.6

The Federal Deposit Insurance Corporation (FDIC) said it mistakenly released an unredacted document showing the biggest Silicon Valley Bank (SVB) customers who were bailed out when the Biden administration backstopped all of the bank’s deposits.  The document was released in response to a Bloomberg News Freedom of Information Act (FOIA) request.  The stunning decision in March to guarantee all accounts above the limit of $250,000 helped bigger companies with no real danger of failing, such as Sequoia Capital which ended up recovering the $1 billion it had with the lender.  Also, Kanzhun Ltd., a Beijing-based tech company, received a backstop for more than $900 million.  The FDIC asked Bloomberg to destroy and not share the depositor list, however Bloomberg refused to comply.  Although the regional banking crisis seems to be on the backburner, is it not over as long as quantitative tightening continues, leading to shrinking deposits in the financial system.