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A comment on Yellen says government will help SVB depositors but rules out bailout. Parent comment

Re:Yellen says government will help SVB depositors but rules... by KptMarchewa on Sunday March 12, 2023 @12:21PM (#35122037)
>If depositors with deposits above the FDIC insurance limit _are_ protected then there will be nothing stopping this from happening repeatedly in the future.

The fact that is stopping this - is the fact that only people who are earning money on risky strategies - shareholders - are being wiped the first.

Depositors are NOT investors and do not earn a premium on successful risky bank strategies.

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Re:Yellen says government will help SVB depositors but rules... by ivalm on Sunday March 12, 2023 @02:04PM (#35123734)
Depositors are (senior) creditors and take on credit risk. Similar to bond holders.
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