The U.S. economy just escaped a 2008-crash-like moment of the pandemic era – a near-collapse of the banking system – because regulators swiftly chose a bailout option for Silicon Valley Bank.
Government officials faced two stark choices after the bank failed last week.
Option #1: Concoct a creative rescue for the bank’s numerous depositors with accounts exceeding the $250,000 insurance cap. It’s a group that includes some of the nation’s cutting-edge companies and wealthiest individuals.
Option #2: Play it by the book and pray gigantic losses on uninsured deposits didn’t spark a run on the nation’s banking system – particularly smaller, regional institutions.
Why choose to save people from their