Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC

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?

[ Parent | on HN ]

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.

[ Parent | on HN ]

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.

[ Parent | on HN ]