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One could argue that SVB depositors would not be expecting the be made whole if it weren't for the bailouts of 2008. The precedent has been set and reinforced.
by bink 4y ago
One could argue that SVB depositors would not be expecting the be made whole if it weren't for the bailouts of 2008. The precedent has been set and reinforced. It's hard to argue that this will not encourage more risk taking and moral hazard.
- pmorici 4y agoThat precedent was set at least as far back in the early 90's when they made depositors of Bank of New England Bank whole after it failed in 1991. This isn't something that started with the financial crisis of '08 https://www.nytimes.com/1991/01/07/business/us-is-taking-over-a-group-of-banks-to-head-off-a-run.html https://www.nytimes.com/1991/01/07/business/us-is-taking-ove...