Post
Topic
Board Economics
Re: Bank Bailouts and Stock Market.
by
NotATether
on 14/03/2023, 08:58:23 UTC
I think the banking contagion is now over. The government and federal reserves backstopping the banks with the protection of assets above 250k. So we won't see more bank runs because people know that their money is protected now so banks are safe.

Well, no.

Because SVB served businesses mostly, and not individuals, which means there are a lot of accounts with millions of dollars of funding inside of them, that will all be hit because of their liquidation. So FDIC protection is really only good for consumer banks - business account bank runs will still be a thing.