Silicon Valley Bank’s shareholders and executives lose it all, as they should. Depositors in good faith, however, should recover and have access to their deposits in order to meet their payrolls, pay their suppliers, and to prevent contagion.
@MittRomney It is not "good faith" to deposit money over the well-known insurance limit and then expect to be made whole. Capitalism doesn't work unless people who take risks bear the costs when they lose.
@MittRomney If Sen Romney wants unlimited FDIC coverage, he can introduce a bill and raise someone's taxes to pay for it. This ad-hoc practice where we have a $250K limit but everyone assumes we will ignore it in a crisis makes no sense.
@PatrickW @MittRomney Watch for the FDIC to raise the limit very very soon
@PatrickW @MittRomney Taxpayers don’t fund the FDIC. Banks do. They have to pay a fee to participate.
@PatrickW @MittRomney Are you saying $250K should be enough for most companies to operate or what?
@PatrickW @MittRomney He’s a corporatist oligarch that got rich on the backs of poor workers who he threw out of work.
@PatrickW @MittRomney What really makes no sense is the thousands of people who did not get paid on Friday. The FDIC is funded by banks. Increase the amount banks pay into it, so that everyone’s money is safe. The economy breaks if banks are not safe.
@PatrickW @MittRomney FDIC is paid by banks not taxpayers.