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Re:Yellen says government will help SVB depositors but rules... by idopmstuff on Sunday March 12, 2023 @11:13AM (#35120977)
How does making the depositors whole affect any of that, though?
Re:Yellen says government will help SVB depositors but rules... by mym1990 on Sunday March 12, 2023 @11:55AM (#35121626)
I think the argument is that if I can start a bank and depend on the government to make my depositors whole in the event of a failure, then I can act/invest in a high risk manner to get more yield, while also paying me and my executive team millions in the process. If or when things hit the fan, my depositors are paid, I am paid, and the investors are the collateral.