Re:Yellen says government will help SVB depositors but rules...
by dangero on Sunday March 12, 2023 @12:37PM
(#35122303)
This bank run happened based on fear of the scenario we are now in. No bank can withstand a bank run due to fractional reserve ratios.
If the depositors lose big then that will increase this fear going forward.
In other words, if all depositors are covered there is no longer a substantial fear of a bank run elsewhere. That’s how it stops it from happening again.
If the depositors lose big then that will increase this fear going forward.
In other words, if all depositors are covered there is no longer a substantial fear of a bank run elsewhere. That’s how it stops it from happening again.