Re:Yellen says government will help SVB depositors but rules...
by michaelmrose on Sunday March 12, 2023 @08:51PM
(#35129012)
You are oversimplifying their argument. People are suggesting that people use more than one bank or make a service that involves using more than one bank not necessarily infinite banks. It isn't necessary to choose between zero risk and existential risk. You can with only modest effort achieve moderate risk.
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Re:Yellen says government will help SVB depositors but rules...
by yibg on Sunday March 12, 2023 @11:07PM
(#35130464)
the math is still the same though, just different degrees. If we (as tax payers) are ok with insuring 3 accounts (as an example) x 250k each, why are we not ok with insuring 1 account for 750k?
Re:Yellen says government will help SVB depositors but rules...
by QuercusMax on Monday March 13, 2023 @10:20AM
(#35136061)
Because you're spreading the risk of bank failure across many banks, which honestly is probably good for everyone....
Re:Yellen says government will help SVB depositors but rules...
by michaelmrose on Monday March 13, 2023 @11:52AM
(#35137426)
Someone with 3 250k accounts is liable to need a bailout on 1 of 3 costing less money.
Re:Yellen says government will help SVB depositors but rules...
by yibg on Monday March 13, 2023 @11:38PM
(#35147138)
Yes but now you have 3 times as many accounts that need to be bailed out.
Instead of 3 people holding 1 account each at 1 bank with 750k, now I have 3 people holding 250k at 3 banks. Per bank it’s still 750k.