Opinion | Banking Is Always a Risky Business

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From WSJopinion: Banking is always a risky business, writes Nathan Myhrvold. SVB isn’t that unusual. Most depositor money is at work someplace else, so the possibility of a run is ever present.

On Mar. 13, 2023, Joe Biden outlined efforts to prevent a full blown banking crisis following the closure of Silicon Valley Bank. Images: WSJ/Getty Images Composite: Mark KellyLike many tech firms, my company and some of the startups we’ve created spent the weekend worrying as the fate of Silicon Valley Bank and its depositors hung in the balance. By Sunday the Federal Deposit Insurance Corp. announced that all was OK—no customers would lose any money.

I’m here to warn you that another bank could implode next. Indeed, just about anybody reading this could be at risk of losing everything over the FDIC’s $250,000 deposit insurance limit. Which bank am I talking about? Why, all of them, of course.

 

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