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by rtpg
1188 days ago
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> FDIC insurance is not infinite. Not understanding that is no fault of the rest of society. I think we should really not forget that SVB hit duration risk on their assets that is almost definitionally not an issue for the FDIC. This isn’t “bank fell apart due to bad loans” this is “bank fell apart because money is locked away for 10 years but is basically guaranteed”. Basically no risk to taxpayers! |
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They fell apart due to greed. Not being satisfied with low short term rates that matched their short term liabilities.
They gambled on longer durations and got burned. It’s not the tax payers responsibility to cover their gambling losses.