It's been awful. Everyone on Reddit is so hopelessly confused about the issue that they can't even complain about it right.
"No bailouts!"
Nobody has been (seriously) talking about them. Shareholders in SVB are toast 100%. Debtors too probably.
"We should nationalize banks that fail!"
That's basically what receivership is. We just don't call it nationalizing because the government just wants to make depositors whole and then get their hands out of the pie.
"We need more (or less) regulation!"
The FDIC stepping in right now - where it appears the bank is solvent but can't satisfy liquidity requirements - is exactly when it should. SVB as a business failed but (it appears) depositors are being made whole by the sale of the banks assets. The system appears to have worked while also not cutting the bank prematurely (nobody seems to be complaining that SVB wasnt in major trouble).
"No bailouts!"
Nobody has been (seriously) talking about them. Shareholders in SVB are toast 100%. Debtors too probably.
"We should nationalize banks that fail!"
That's basically what receivership is. We just don't call it nationalizing because the government just wants to make depositors whole and then get their hands out of the pie.
"We need more (or less) regulation!"
The FDIC stepping in right now - where it appears the bank is solvent but can't satisfy liquidity requirements - is exactly when it should. SVB as a business failed but (it appears) depositors are being made whole by the sale of the banks assets. The system appears to have worked while also not cutting the bank prematurely (nobody seems to be complaining that SVB wasnt in major trouble).