More banks may fail.
No, because there’s a system in place to deal with these things.
If it’s really a systemic risk, bail it out. But I do like to watch the world burn too, specially high hubris people’s worlds. I hope someone buys it though. I guess that’s the best scenario. If it’s Melon Musk then the trolling will be next level. It would be interesting if it’s bought by the Saudis or even the Chinese, via a stealth structure. The drama would be next level.
It should be bailed because SVB clients didn't do anything wrong. The regulators were asleep on the wheel and it's their fault. And fine/jail SVB for failing to do their job
Depositors will be bailed out, bank will be wiped out.
I was gonna say “define bailout”. Depositors should absolutely get their money back. Everyone else I don’t care what happens
I think this needs to happen. It needs to burn. And so do the rich VCs who caused this. If there is a bailout those same pricks will reap all the benefits.
If they don’t reap those benefits you will also be burned down
Silly OP! Moral hazard is only a thing for the poors! Banks are always right
Some banks are always more right than the others.
No. Because they want capitalism. But capitalists want socialism to bail them out. Pick your lane capitalists and stick to it. Let them fail. It will be a lesson to others to be more responsible.
What do you mean by bailed out? The stakeholders at the company definitely wont be bailed out, but the clients will probably be insured by the fed.
The big stakeholders sold shares and granted early bonuses. They walk away with lots of cash.
Dont be so sure of that. There will be mountains of litigation coming in for the execs and depending on how events play out they might even get convicted. But at the very least they are looking at years of investigations and lawsuits. The idea that they just cashed out and will get to walk into the sunset is ridiculous.
The news are out. All deposits will be made whole. https://www.federalreserve.gov/newsevents/pressreleases/monetary20230312b.htm
No because it will cause other banks to make the same mistakes because there’s no risk involved