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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by dougmwne on Sunday March 12, 2023 @08:13PM (#35128656)
The VCs took a risk by choosing to use the same bank, not insuring the deposits beyond the FDIC minimum, then stamping toward the exit every man for themselves instead of looking after their own community. Privatized gains and socialized losses.
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Re:Joint Statement by the Department of the Treasury, Federa... by modeless on Sunday March 12, 2023 @08:40PM (#35128915)
Blaming depositors for a bank run is stupid. The bad investments and the lack of diversity in depositors are squarely the bank's fault. The bank does not deserve charity from its depositors.
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Re:Joint Statement by the Department of the Treasury, Federa... by grahamstan on Sunday March 12, 2023 @09:18PM (#35129332)
In this case, the 'depositors' are wealthy companies and individuals, by definition holding >$250k, who could afford to do due diligence.

Obviously they were getting perks working with 'Silicon Valley Bank' that didn't exist at say, Wells Fargo. No farmer in America was banking there because, hey, that's obviously kind of a sketchy bank.

There was a reward being given to the wealthy depositors, and none bothered to investigate the associated risk. Well, actually, Thiel did, noticed the risk, and pulled out his companies. Why should we bail out the people who missed this?

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Re:Joint Statement by the Department of the Treasury, Federa... by kortilla on Sunday March 12, 2023 @11:01PM (#35130424)
>No farmer in America was banking there because, hey, that's obviously kind of a sketchy bank.

Wtf are you talking about? It was the 20th largest bank in the country. It wasn’t some sketchy thing exclusively for startups.

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Re:Joint Statement by the Department of the Treasury, Federa... by argc on Monday March 13, 2023 @12:12AM (#35130950)
It doesn't matter who was banking there, from my perspective a society where we have to worry about bank runs and bank failures is worse than a society where we don't.
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