Source: The American Prospect
by David Dayen
“The brightest minds in and around San Francisco Bay had an unadulterated meltdown over the weekend over the failure of Silicon Valley Bank. This was a failure that they themselves caused, mind you, engineering a digital flash bank run that forced SVB to realize heavy losses, mostly from interest rate hikes and the bank’s unbelievable failure to even attempt to manage interest rate risk. The venture capitalist-led mob quickly moved on to another dire warning: Because over 90 percent of SVB’s depositors exceeded $250,000 in guaranteed FDIC insurance, the government must make them 100 percent whole, immediately, or every regional bank in America will see the same failure. … They essentially took out a match next to a gas pump and demanded that federal regulators not force them to light it.” (03/13/23)
https://prospect.org/economy/2023-03-13-silicon-valley-bank-bailout-deregulation/