The president of the USA just announced, on live television, "investors will not be protected in the event a bank fails".
So the investors are all pulling their money out and putting it elsewhere.
So the investors are all pulling their money out and putting it elsewhere.
Depositors = people who have deposits sitting in the bank.
Though of another way: If you bought SVB on Robinhood then that stock isn't worth anything anymore. If you have money _in_ SVB then it will be available.
Would it be worth anything after SVB is bought by a larger bank, or does the takeover process zero out shareholders?
Biden isn't providing new information, he's simply scoring political points because it would look terrible if the government was backstopping investors.
Investors are never protected when the things they invest in fail. At least, they aren't protected beyond the seniority rules of bankruptcy law.
Seems fair to me, government never bail me out when I do a bad investment.