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A comment on Big Banks Agree to Historic $30B Deposit Injection in First Republic. Parent comment

Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by cycrutchfield on Friday March 17, 2023 @08:43AM (#35196351)
Aside from the moral hazard, you are right. But most of the histrionics about bailouts, particularly the 2008 bailouts, are often based more on feelings than facts.
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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by bumby on Friday March 17, 2023 @10:09AM (#35197286)
>are often based more on feelings than facts.

This is how it's being framed on many news networks as well. But I don't know if I quite buy it; maybe you can clarify.

The 2008 was considered "different" because it was essentially driven by a bunch of bad bets on sub-prime mortgages. In contrast, this current one is being framed as just ensuring depositors. But that assurance is needed because the banks made bad bets on the bond market. Are the two really fundamentally different?

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Re:Big Banks Agree to Historic $30B Deposit Injection in Fir... by cycrutchfield on Saturday March 18, 2023 @01:22PM (#35211079)
Well, when SVB got its “bailout”, what happened to its shareholders? They got wiped out. The people that made the bad bets didn’t get rescued.
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