News for hackers. Stuff that matters.

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 danenania on Sunday March 12, 2023 @05:36PM (#35126599)
If the deposits are insured, a bank failure is far less likely in the first place.

It might be efficient for the FDIC to require complex and expensive financial engineering just to keep operating capital safe, but it's hostile to businesses, especially small ones, and is out of reach for many.

[ Parent | on HN ]
Re:Yellen says government will help SVB depositors but rules... by dragonwriter on Sunday March 12, 2023 @06:00PM (#35126860)
> It might be efficient for the FDIC to require complex and expensive financial engineering just to keep operating capital safe, but it’s hostile to businesses

The FDIC exists to protect against a general collapse of banking like the one that preceded the Great Depression, not as a generalized subsidy to business.

[ Parent | on HN ]