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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 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?
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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....
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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.
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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.

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