Dear FDIC, CFPB, and Federal Reserve

The FDIC Proposes a Special Deposit Insurance Assessment on Large Banks to reimburse the FDIC for the losses due to rapid flight of "uninsured" depositors at Silicon Valley Bank.

CFPB Director Rohit Chopra says "the FDIC Board is proposing a special assessment to require the banking industry to pay for that extra cost. I support the proposed special assessment because it makes large banks -- the firms that overwhelmingly benefited from this action -- foot the bill."

However, the problem is not the number or size of uninsured deposits. Nor is the problem capital flight from one bank to another. That large banks benefitted from the capital flight has nothing to do with the real problem either.