SVB was offering higher returns by taking on more risk than was required. Those customers now lost nothing. The rest of us who went with safer banks offering market rate returns not only received less over that duration, but we have to pickup their tab.
Why should I or a bank ever do diligence again? I can just claim I misjudged the risk.
They were supposedly safe. Misconceptions exist everywhere in business and finance. Silicon Valley's entire modus operandi is about "disrupting" industries that feel their business models are safe.
They were in fact not safe. The bank no longer exists after failing to cough up depositors' cash.
Why should I or a bank ever do diligence again? I can just claim I misjudged the risk.