The government actually wants banks to speculate with customer funds. You might think that the safest bank would be one that doesn’t do anything with customer d

The government actually wants banks to speculate with customer funds. You might think that the safest bank would be one that doesn’t do anything with customer deposits, just sits on them. Well this “safe bank” actually falls foul of US banking regulation - there are regulatory requirements for minimum levels of “speculation“ as a bank. Now clearly SVB got in over their heads here with risk. But just sit on all the money isn’t a legal alternative.