Yellen and the FDIC is in a tough spot. This is the important line, "Any losses to the Deposit Insurance Fund to support uninsured depositors will be recovered by a special assessment on banks, as required by law." Thus, on one hand, I'm glad they're doing this, as it should help prevent wider bank runs, and it ensures that banks are the ones that are actually paying for it. At the same time, this is yet another exam…
> but I really wish we could plan for these entirely foreseeable events ahead of time
We did with Dodd-Frank after the 2008 housing crisis, signed into law by Obama. Would have stopped over leveraging found at SVB.
Then it was rolled back in 2018, signed by Trump. Wasn't a hard sell to Trump at the time. "Obama did it? Okay, let's undo it!"