Many of the same people that wants the government to completely cover uninsured deposits at SVB and

[JohnSJ]

first republic bank, are upset President Biden allowed student loan forgiveness up to 20,000

The hypocrisy is so blatant, yet there is hardly any coverage of it by the media

[FBaggins]

1. Mis-defined... and definitely not the same thing

The government isn't "completely covering uninsured deposits at SVB"

The amount of "coverage" is the difference between SVB's assets (at current market value) and their deposit liabilities (not bonds or equity). That amount might very well be zero, but it certainly won't be close to the amount of their uninsured deposits.

And even if it isn't zero - the government isn't covering it at all. The other banks are.

None of which is comparable to forgiving student debts. It would be closer if what the president proposed was to forgive student debts for people who declare bankruptcy (which doesn't currently get rid of student debt) or if the government were covering bond debt invested in SVB.

[JohnSJ]

2. Thanks. The impression I got was based on this NPR report

"For years, the FDIC has insured up to $250,000 of deposits that anyone has stashed away at a federally protected bank. Anything beyond that is not guaranteed to be protected should a financial institution go belly up.

But over the weekend, following the spectacular collapse of Silicon Valley Bank and Signature Bank, the FDIC made an exception to that rule and is now in the process of paying back all customers of the two failed banks in full — no matter the size of their deposits.

The move has renewed a huge debate over government intervention in the banking industry and has raised questions over how the FDIC will operate moving forward should other banks run into trouble."

https://www.npr.org/2023/03/14/1163295661/will-the-fdics-move-to-cover-uninsured-deposits-set-a-risky-precedent