The failure of @SVB_Financial could destroy an important long-term driver of the economy as VC-backed companies rely on SVB for loans and holding their operating cash. If private capital can’t provide a solution, a highly dilutive gov’t preferred bailout should be considered.
— Bill Ackman (@BillAckman) March 10, 2023
Surely there's a caveat here, right. Haha no:Former Treasury Secretary Lawrence Summers said SVB meltdown shouldn’t pose a risk to the financial system as long as depositors get their money back https://t.co/AurubtHHNQ
— Bloomberg (@business) March 10, 2023
“What is absolutely imperative is that, however this gets resolved, depositors be paid back, and paid back in full,” Summers said on Bloomberg Television’s “Wall Street Week” with David Westin.We do have a sytem of deposit insurance, but it isn't unlimited, and if Larry thought it should be unlimited he should have said so and set up the system accordingly.
...adding, the point is that this is a bank where important connected people have their money. If this was some local bank in Ohio serving "regular" businesses, Larry wouldn't be on the teevee demanding they get all their money back.