48 Hours Till Payroll, $200,000 to Go: Diary of a Bank Failure
New York TimesMAY 2023
While this acquisition may not seem like one in the traditional sense, it's still a bailout. These banking institutions got in over their heads and collapsed. The customers of those banks are still getting their money from somewhere, which is partly at the expense of taxpayers and partly the finance industry. So while we call it protecting the consumer, it is ultimately a bailout, just disguised by another name.
There are certainly questions to be answered surrounding how this collapse occurred in the first place, but that doesn't mean the government response is unethical. This is not a bailout, as the FDIC ensured a private entity would pay for it. No federal money is being used other than the highly-praised $250K FDIC insurance policy, so talk about taxpayers bailing out big banks should be nipped in the bud.