Due to the collapse of Silicon Valley Bank, American taxpayers are concerned about the health of the U.S. banking system. Federal regulators insured deposits beyond the $250,000 FDIC limit to protect against "systemic risk." The Biden administration disingenuously claims taxpayers will not be on the hook for bailing out SVB.

However, taxpayers will be affected by the depositor bailout. The regulators have insisted that none of the losses associated with SVB and Signature "will be borne by the taxpayer," but this statement ignores the increase in deposit insurance fees that banks will have to pay, which could be passed down to consumers in the form of higher fees. Taxpayers will ultimately pay more for banking services because the regulators decided to insure all depositors, circumventing the $250,000 threshold.

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