Paxter Posted March 17 Author Share Posted March 17 (edited) A few other miscellaneous points I’d make: - The run on SVB was old-fashioned…and not-so-old-fashioned at the same time. The Twitter-fuelled speed of the deposit outflows was quite something to behold and caught the oversight bodies by surprise. - The backstopping of unsecured deposits is being marketed by the Government as avoiding a bailout. That’s only true as a technicality. Ultimately, FDIC is funded by bank customers and therefore taxpayers. So the backstops do come at a public cost, albeit one perhaps worth paying in this instance. - The liquidity provision to First Republic by its competitors is a bit of a financial circle jerk and feels weird to me. I’d much rather see a private sale, but I guess no one really wants FR at this point. Edited March 17 by Paxter ants 1 Quote Link to comment Share on other sites More sharing options...
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.