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Charles Calomiris: Deposit Insurance Encourages Bank Failures Like SVB


Informed customers used to monitor banks’ risk management. Now they skirt the $250,000 limit. Silicon Valley Bank’s failure makes many Americans grateful for deposit insurance, which protects accounts holding $250,000 or less. But the SVB episode also illustrates the dangers of deposit insurance. A banking system dominated by government

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Posted: March 13, 2023 Monday 01:48 PM