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i’m a huge @ddayen fan, and i agree that SVB’s customer base is particularly unsympathetic.
but the idea businesses should in general split deposits or use CDARSes and other techniques that basically game the deposit insurance limit is not ideal. if they do, it puts FDIC on the hook anyway, but at waste of lots of people’s time, generates unnecessary complexity, creates fee opportunities for new species of useless finance professionals. 1/
https://prospect.org/economy/2023-03-13-silicon-valley-bank-bailout-deregulation/
i 1000% endorse his mocking condemnation of the “crapo bill” and its supporters though.
it probably is not a coincidence that precisely the banks who took advantage of that abomination (hint — not predominantly small community banks) are now the locus of a new crisis. (thanks Rs and sell-out Ds.)
deposits and payments should be structurally segregated from risk investing (including traditional commercial-bank risk investing, not just the glass-steagall stuff). postal banking ftw. /fin