Hacker Newsnew | past | comments | ask | show | jobs | submitlogin
Shares in First Republic Bank crashes 70% in pre-market due to SVB collapse (marketwatch.com)
3 points by rvz on March 13, 2023 | hide | past | favorite | 1 comment


So they amicably saved all depositors in SVB, but not investors, because using taxpayers money to protect bad investment would be very unfair - unless its too big to fail, then it's "necessary". Otherwise we could get a depression, and depression is very bad and should never have to happen.

The problem being that now no investor would ever want to invest in a small, not-too-big-to-fail bank, especially in volatile times such as these. So all investors are pulling their money out of small banks, even at massive losses.

We might be seeing the start of an investor-bank-run, instead of a depositor bank run. Also just called a _crash_ I guess.




Consider applying for YC's Winter 2026 batch! Applications are open till Nov 10

Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: