Over the weekend, amid populist howls of outrage that a bailout of SVB would promote moral hazard (in the end depositors did get bailed out with a full recovery, but other unsecured creditors oddly enough would get nothing, while the common stock is a doughnut), we said that while technically true, the events that toppled SVB and now SBNY as well, are really a subsidy for the big banks.
Read more here: https://www.zerohedge.com/markets/too-big-fail-banks-flooded-deposits-bank-run-drains-small-bank-cash
