Did bailing out SVB’s customers set a bad precedent?

Silicon Valley Bank headquarters in Santa Clara, California, US, on Friday, March 10, 2023. Silicon Valley Bank became the biggest US bank failure in more than a decade, after its long-established customer base of tech startups grew worried and yanked deposits. Photographer: Philip Pacheco/Bloomberg via Getty Images

Did bailing out SVB's customers set a bad precedent?

Lori Bettinger, president of BancAlliance and former director of the TARP Capital Purchase Program, tells "Nightcap's" Jon Sarlin the government's actions to guarantee deposits at SVB and Signature Bank does not create "moral hazard" by incentivizing risky behavior.

02:45 - Source: CNN Business

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Silicon Valley Bank headquarters in Santa Clara, California, US, on Friday, March 10, 2023. Silicon Valley Bank became the biggest US bank failure in more than a decade, after its long-established customer base of tech startups grew worried and yanked deposits. Photographer: Philip Pacheco/Bloomberg via Getty Images

Did bailing out SVB's customers set a bad precedent?

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