Yeah, I think those types of proposals have been batted around. The bank has failed and it’s a question of whether they do anything for depositors over and above the $250k. It’s a tough spot, really. On one hand you don’t want to encourage the moral risk, and on the other you don’t want contagion.
I think that contagion is obviously a huge risk, and it’s also quickly solved by backing the deposits. It’s going to be an interesting day and the open tomorrow will be as a result.
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