Thoughts on the Bank Bailouts | article by Matthew C. Klein - Upcarta

Thoughts on the Bank Bailouts

Article
Mar 14, 2023
#Banking #FinancialCrisis #Regulation

Matthew C. Klein

Read on theovershoot.co

Financing risk-taking with deposits is an inherently fragile business model that depends on persistent government support. There are alternatives.

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Michael Pettis @michaelxpettis · Mar 14, 2023

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Very good piece by Matt Klein on SVB in which he argues that the main problem was not so much the interest-rate mismatch (half of the deposits didn't even pay interest) as it was the extent of SVB's highly unstable institutional deposits. @M_C_Klein