On Friday, Silicon Valley Bank, the 16th largest bank in the United States, was taken over by the FDIC following a run on the bank that occurred on Wednesday.
By the end of Thursday, customers had withdrawn a staggering $42 billion in deposits. SVB primarily catered to technology workers and startups, including some of the biggest names in Silicon Valley, like Roku.
On Sunday, The Federal Reserve, Treasury Department, and Federal Deposit Insurance Corporation announced they would cover uninsured SVB deposits.
Bailing Out Rich People
Twitter users, noting that SVB caters to many rich people and tech start-ups, took to Twitter to discuss what they see as the government once again bailing out rich people.
“Lotta Silicon Valley investors living outside their means instead of budgeting for an emergency smh”
Lotta Silicon Valley investors living outside their means instead of budgeting for an emergency smh
— Ken Klippenstein (@kenklippenstein) March 12, 2023
The Dichotomy of Unfairness
People vented frustration that the recent move to cancel student debt was canceled, but the government is okay with giving a bank money.
“I can’t get $10k forgiven for being gaslighted into thinking going to college would get me a job, but other people can get billions for thinking it’s ok to prop up a bank with monopoly money. ok”
I can’t get $10k forgiven for being gaslighted into thinking going to college would get me a job, but other people can get billions for thinking it’s ok to prop up a bank with monopoly money. ok
— i bless the rains down in castamere (@Chinchillazllla) March 12, 2023
Others were particularly upset because they felt that the VC class fought against worker right and government regulations but still wanted the bailout.
“It’s totally reasonable for people to be upset that a VC class that has shown active disdain for workers, government programs and even recently their own employees got an immediate bailout in part because they screeched loud enough on Twitter with no sense of shame or irony.”
It’s totally reasonable for people to be upset that a VC class that has shown active disdain for workers, government programs and even recently their own employees got an immediate bailout in part because they screeched loud enough on Twitter with no sense of shame or irony.
— Ben Collins (@oneunderscore__) March 12, 2023
Government Bailout for Thee but Not for Me
Why does the government give money to the bank but not to the people?
“government bailouts for venture capitalists while the same government cuts food stamps, does the largest disenrollment from medicaid ever, and sits on its hands during a national housing crisis”
government bailouts for venture capitalists while the same government cuts food stamps, does the largest disenrollment from medicaid ever, and sits on its hands during a national housing crisis https://t.co/RvIkI61TYE
— austerity is theft (@wideofthepost) March 13, 2023
SVB Made This Happen
Others pointed out that SVB was a specific bank that fought against regulatory status as part of a tech experiment. They wanted to be different, and it failed.
“Again, SBV and its allies fought at great length and great expensive in multiple venues to *not* have the same regulatory status as the largest banks. It took tremendous effort on their part to achieve this outcome, it wasn’t done to them by their enemies.”
Again, SBV and its allies fought at great length and great expensive in multiple venues to *not* have the same regulatory status as the largest banks.
It took tremendous effort on their part to achieve this outcome, it wasn’t done to them by their enemies. https://t.co/buDLSGR3jf
— Matthew Yglesias (@mattyglesias) March 12, 2023
Good thing this isn’t student loan debt or medical bill!
“Debt is fake unless it’s a student loan or you owe a hospital money”
Debt is fake unless it’s a student loan or you owe a hospital money
— Aaron (@BobbyBigWheel) March 12, 2023
What do you think? Should the Fed step in and bail out SVB?
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A Dime Saved
Hi! I am a millennial mom with a passion for personal finance. I have always been “into” personal finance but got inspired to start my blog after a period of extended unemployment. That experience really changed the way I viewed my relationship with money and the importance of accessible personal finance education.