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by nugget 1193 days ago
They didn't act fast enough to save any of the SVB brand value which is now probably negative. I look forward to the SVB employee Halloween costumes reminiscent of Lehman Brothers in 2008.
3 comments

Why should they try and save the SVB brand ?

It deserves to be dragged through the gutter for the hubris and incompetence demonstrated by the CEO, CFO etc.

And hopefully a reminder to everyone that they should due diligence on their banks. The fact that they had no CRO and openly lobbied for deregulation should have been major warning signs.

The short answer would be because the SVB brand is essentially owned by the bank's unsecured depositors at this point. You have to balance their recovery against the moral hazards of too earnestly sweeping failure under the rug.
None of that is the FDIC's job.
They could probably brag about being FDIC insured, maybe make the font bold to restore their branding image.