The FDIC's statement shared that: As of December 31, 2022, Silicon Valley Bank had approximately $209.0 billion in total assets and about $175.4 billion in total deposits
The question is what haircut the FDIC will take on the $209b when they forcefully liquidate all securities. If the above data is still accurate, the FDIC can make depositors whole as long as they don't take more than a 16% haircut when liquidating.
SVB recently liquidated their AFS bond portfolio at ~90c on the dollar. And, this traunch of securities is very sensitive to interest rate changes.
Their HTM bond portfolio consists mostly of securities that could be sold today for ~80c on the dollar.
Given the above, it seems likely depositors will be made close to whole. Then again, who knows what's hidden from public eye.
Where is this 80% number coming from?