[mister_tee]

Apologies if I'm missing something, is this discussing the new Bank Term Funding Program or some other guarantee?

(edit: I see the phrasing "fully protected by the FDIC" -- this might be the general idea that depositors won't lose anything, but not literally that FDIC is officially extending insurance, I think?)

Anyway, for the BTFP, I think it is generally available to all banks. Seems to allow borrowing against underwater assets at par value, at roughly 4.6% interest.

https://www.federalreserve.gov/newsevents/pressreleases/file...

While it came together over the weekend[1] there are some guardrails -- including that it only applies to collateral that was already owned at the time of announcement (so far...).

[1] based on zero evidence, I wouldn't be surprised if they have stuff like this war-gamed and sketched out in case

[mister_tee]

late followup, it might indeed be that FDIC removed insurance limits for these two banks?

I had seen the first round of announcements around receivership certificates https://www.fdic.gov/news/press-releases/2023/pr23016.html

I'm not sure on the time of that but the Fed press release the evening of the same day has the exception and "all depositors will be made whole" phrasing:

https://www.federalreserve.gov/newsevents/pressreleases/mone...