"Some observers fear that the decision to disregard the $250,000 cap on insured deposits could generate irresistible pressure to insure deposits fully regardless of the amount. This would undermine the purpose of the cap, which was to give large depositors an incentive to monitor the conduct of their banks and subject the system to market discipline. A total guarantee, many argue, is an invitation to irresponsibility. This may be right."
SVB was happy to conceal their precarious position until they were required to recognise and disclose losses when they sold some of their bonds.
Is there any reason we should promote personal responsibility on the part of depositors.
The author's children are VC. What appears to be an easy question suddenly become challenging.
SVB was happy to conceal their precarious position until they were required to recognise and disclose losses when they sold some of their bonds.
Is there any reason we should promote personal responsibility on the part of depositors.
The author's children are VC. What appears to be an easy question suddenly become challenging.