@balajis Did SBV fight to avoid the kind of regulations that might have saved it? Sick of banks fighting to shirk safeguards and then screwing up the economy, and THEN complaining about it when they beg for handouts. I wonder how many SBV bankers grumbled about "socialism" until now? Tweet added by Darinstrauss @Darinstrauss

Darinstrauss

1 year

@balajis Did SBV fight to avoid the kind of regulations that might have saved it? Sick of banks fighting to shirk safeguards and then screwing up the economy, and THEN complaining about it when they beg for handouts. I wonder how many SBV bankers grumbled about "socialism" until now?

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Balaji

@balajis

1 year

The message the market has received is: deposits are unsafe unless they are in a too-big-to-fail bank. Small banks get piddly FDIC insurance. Big banks get the full backstop of the US government, because they're systemically important. Bail out the big, submerge the small.

Philip Pilkington

@philippilk

1 year

Serious issue. Are we saying that all cash piles, no matter how large, will be guaranteed by the government so long as they’re in an FDIC bank? So, no matter how rich you are, the government guarantees your wealth? So long capitalism; ‘twas nice knowing you.

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Osmosiposit

@osmosiposit

1 year

@Darinstrauss @balajis SVB stock should go to zero, investors should receive a full hit. Usually we don't expect depositors to be taking in the same risk as share holders

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