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They can provide higher rates if they take riskier investments/arbitrages, I thought everyone knew this.
by orwin 4y ago
They can provide higher rates if they take riskier investments/arbitrages, I thought everyone knew this.
- AnimalMuppet 4y agoWell, and did they? Did SVB provide higher rates than other banks? I don't think so; I recall reading that part of their problem was that they lost tens of billions of dollars of interest free deposits over the last year or so. I think that the risk went into higher profits, not higher rates to depositors. So, not really an incentive to depositors.