Kevin Bae

Non-Social in a Socially Networked World

Safeguard your wallet… President Biden says the banking system is safe.

I would feel better if he would have never given a speech.

In hindsight the collapse of SVB is simple. They were under water in government treasuries. When the Fed raised interest rates the bonds they held became worth less than the amount they could sell them. They didn’t have the liquidity to handle the panic withdrawals.

What unintended consequences will come from the federal government guaranteeing all deposits above and beyond the FDIC insurance level of $250K? Is this a de-facto takeover of all bank deposits by the federal government?


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