Bank Deposit Bailouts Could Cost Taxpayers Billions

FDIC’s Ability to Repay Depositors Is Limited, Taxpayers Would Pay Shortfalls

People rush to a saving bank in Millbury, Mass., on Oct. 24, 1929, as Wall Street in New York crashed, sparking a run on banks that spread accross the country. OFF/AFP/Getty Images

Following a string of regional bank failures over the past several weeks, bank regulators were quick to guarantee all depositors for the full balance of their bank accounts, even beyond the $250,000 limit set by the Federal Deposit Insurance Corp. (FDIC).

At the time, the Biden administration assured Americans that taxpayers would not be on the hook.