Re:Anxiety Strikes $8T Mortgage-Debt Market After SVB Collapse
by treis on Tuesday March 21, 2023 @12:27PM
(#35248513)
It doesn't because they made all the depositors whole. If they didn't do that then the last 30% or whatever depositors remained would have taken all the losses.
Regulators have broad power to close banks. They could have done so when SVB failed to raise equity or really before that. Run stops because deposits are transferred to a healthy bank.
How does this materially differ from what happened? Is there a federal power to temporarily close banks? Doesn't the run immediately continue when reopened?