SVB Was Donald Trump’s Bailout
If the government offers to guarantee a loan, it makes it far more likely that the beneficiary will be able to get the loan, and that they will pay a lower interest rate for this loan. In this case, the people who held large uninsured deposits at SVB apparently decided that it was better, for whatever reason, to expose themselves to the risk by keeping these deposits at SVB, than adjusting their finances in a way that would have kept their money better protected. More
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