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Backstopping the deposits or not doesn’t change that.

• tome 4y ago
  It changes whether depositors give banks their deposits in the first place.
• stefan_ 4y ago
  Of course it does - you just put your money with whatever fraudster offers the highest interest, when the gravy train eventually stops, well its no loss to you. See also: Icesave.
  • junofan 4y ago
    You want individuals to investigate for signs of fraud before making deposits at chartered US banks? Shouldn’t the chartering agency monitor that?
    • orwin 4y ago
      Individual still get their 250k. I mean, did svb offer higher rates/lower costs than average banks? If yes, depositors of more than 250k have to take a haircut, proportional at what was left in the bank (and honestly it seems like all deposit were backed, so even if founds aren't available now, there will be no losses)