It's not that people are calling it an exit scam, rather they're talking about uninsured deposits as if they're completely gone. I feel that worry descends stra

It's not that people are calling it an exit scam, rather they're talking about uninsured deposits as if they're completely gone. I feel that worry descends straight from cryptocurrency exchanges blowing up, where there is generally no assets left. (I agree I overspoke by calling FTX an "exit scam", when it seems more like gambler's ruin) AFAIK the FDIC doesn't look kindly on people who liquidate their accounts during a bank run [0]. This has two purposes. First it spreads a smaller amount of pain around to all depositors, rather than a larger amount of pain for some depositors. And second, it discourages bank runs in the first place. And honestly without the meme behavior SVB might not have collapsed. I don't think talking about holding the bonds to maturity is a great general appraisal of the situation. But on the other hand it seems SVB had lots of depositors that were actually content to park a lot of cash and not chase high yields, so it could have actually worked out if not for the run. [0] https://news.ycombinator.com/item?id=35097028 https://news.ycombinator.com/item?id=35097028