Op-ed on CNN.com: Fully reimbursing SVB depositors may prove to be a bad move

CNN.com today published this op-ed in which I express doubts about the wisdom of the unlimited guarantee of uninsured deposits, which the US authorities have applied to Silicon Valley Bank and Signature Bank with the consequence that the same will be expected in most or perhaps all future cases. While it is clear that the authorities needed to provide generous liquidity assistance this week, I am among those unconvinced that it was necessary to depart from the time-tested principle of limited deposit insurance, which I view as a regime change for US finance.