Well here in America we love delusional thinking. For example, America is a democracy where everyone has the same amount of influence as everyone else due to their single vote. This is in contrast to reality where exceptionally rich individuals and corporations have the ability to "lobby" or otherwise use their financial position to influence policy making and political outcomes.
I loved when Aunt Becky from "Full House" got lambasted for using her money/position to influence her child's acceptance to college. The collective outrage was hysterical when at the same time billionaires and corporations do the same exact thing but it is accepted as "business as usual" with almost no questioning whatsoever.
el oh el
So, we are upset that the regulations were rolled back a few years ago and this bank failed a few years later? I agree it is annoying there was deregulation that this bank lobbied hard for and then this shit fails.
Are we mad that SVB was able to purchase Boston Private Bank and Trust, even though it was deemed that it wouldn't be a big deal if the bank failed post-purchaser? I sort of agree, but the bank increased it assets dramatically after that merger. Should the regulators been able to see this growth? I have no idea.
Are we mad that the depositors are getting their money back? I'm a little mad about this, but maybe I'm just hopeful that if I had 260K in the bank, I'd get all 260 back instead of just 250.
And, I mean Roku seems dumb for keeping $500 million in cash at SVB if the government only insures $250K, but do we let Roku along with the other tech companies that stupidly kept tons of cash at SVB, fail with SVB? I don't know.
It is wrong to bail out Roku, but what would happen to Roku, all the other companies, and the broader economy if the insurance wasn't expanded to cover the deposits?
What would the best response to the situation be? Offer Roku and the other companies that kept too much money with SVB no or low interest loans that need to be paid back over time? Just let any company that over banked with SVB possibly fail? Give them a portion of their money back? I honestly have no idea.
I do agree there is some capitalism for the masses and socialism for the rich to this. Maybe a better solution is the US government refunds all the money for these companies but gets a huge portion of the companies that banked with SVB because otherwise they'd be fucked. They can get their money handed to them and give up partial ownership to the government or they can risk trying to make it without the money they deposited at SVB?