Regulators unveil plan to assure depositors will get money after SVB collapse

Regulators unveil plan to assure depositors will get money after SVB collapse

https://www.cnbc.com/2023/03/12/regulators-unveil-plan-to-stem-damage-from-svb-collapse.html?__source=iosappshare%7Ccom.apple.UIKit.activity.CopyToPasteboard

So looks like the US government will protect depositors in order to protect the larger economy and risk of further contagion.

To be honest I think this is a good move. Why ? Because if not, why would any business deal with any bank outside a TIER 1 bank (JPM , BOA, Wells Fargo or Citi)?

Huge risk of everyone leaving smaller banks and going only to the larger ones. At least this way the depositors are left whole