Federal Reserve lent $300 billion in emergency funds to banks in the past week
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Nearly half the money — $143 billion — went to holding companies for the two major banks that failed over the past week, Silicon Valley Bank and Signature Bank, triggering widespread alarm in financial markets.

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  • aaro [they/them, she/her]
    ·
    2 years ago

    This is of course all within the capitalist framework, but is putting money in a bank account really ever considered a risk or an investment? That makes sense for investment accounts and stuff but as far as I'm aware these were just normal bank accounts

      • aaro [they/them, she/her]
        ·
        2 years ago

        I guess that tracks, but it feels weird to call something a "risk" when there is no upside (0% interest) and only a downside

          • aaro [they/them, she/her]
            ·
            2 years ago

            I follow. Thanks for walking me through it.

            As a wise man once said, "The kind Vladimir Ilyich would have shot everybody here".

    • nat_turner_overdrive [he/him]
      ·
      2 years ago

      The people using SVB were often people who could not get loans from bigger, more mature banks. Think of all the completely useless apps and projects venture capital likes to fund. SVB also required loans to be deposited into SVB accounts. I'm no business or finance knower but there is no way I would go through with getting a shady loan that I have to keep at the shady bank so they can puff up their numbers.