I am visiting @StanfordGsb and @HooverInst , so I decided to pass by the main Palo Alto branch of #SVB at 9.00am. This is my comment. A quick thread also with my "policy" observations.

🐦🔗: https://n.respublicae.eu/lugaricano/status/1635326218886352897

The branch was taken over by FDIC staff. SOme bank staff as well. An FDIC staffer telling customers they do not need to close their accounts and transfer because "this is probably the safest bank in the world today,since insurance is unlimited and everywhere elsy it will be 250k"

🐦🔗: https://n.respublicae.eu/lugaricano/status/1635329378065473537

The customers were very happy. One told me "man, it is all about payroll, if you do not make payroll you face jail". One very thoughtful entrepreneur said: "look, banks should not play with other people's money, banks should just be banks".

🐦🔗: https://n.respublicae.eu/lugaricano/status/1635329380439449601

I asked him what he meant. He did not see at all, in his mind this was not the image, his role as ensuring the deposits were safe there. This had to be the case, by definition.

🐦🔗: https://n.respublicae.eu/lugaricano/status/1635329384855814144

Now, the question is: if we do not think an extremely smart entrepreneur in charge of tens or hundreds of millions of dollars is able to monitor the bank, why the shop keeper or restaurant owner?

If the shop keeper or restaurant owner is not able, why anyone else?

🐦🔗: https://n.respublicae.eu/lugaricano/status/1635329386269523968