Silicon Valley Bank bailout: Did regulators have a choice?

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

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