Re:Yellen says government will help SVB depositors but rules...
by rolldat777 on Sunday March 12, 2023 @07:53PM
(#35128403)
All investments have risk. This is one of the risks associated with meager yields - very rare but possible wipe out. If depositors were always guaranteed then what would prevent high-risk banks that promise huge yields but ultimately just rely on govt backstopping when they go under. Who pays the cost in that case? Even 'guaranteed' investments like cash or treasuries are not guaranteed, there are failure modes.
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