Originally Posted by
Seran
That's asinine. Treasury bonds are a guaranteed return and hold it's value provided you hold it through maturity. The "treasury bond market" is nothing more than people who buy and sell treasury notes prior to maturity hoping some change will result in a profit. Tell me, you have a fixed note that's not yet due, by what right do you have to expect a positive return on investment prior to it's maturity? The bank was over leveraged, which in turn triggered a very highly publicized bank run, that in turn killed the bank whose assets didn't support another firm providing capital or buying them out. End of story.
As was stated, you choose your bank and like any other investment you expose yourself to risk of losing your funds. That they chose a firm like SVB with an incredibly loose business model is their fault. Depositors should be paid out like a super priority creditor, before any other notes or obligations. If and only if there weren't enough to make them whole, then the FDIC should have stepped in to pay it's maximum of 250K.