Yes, it's a bailout—and yes, it's unwise. The U.S. government will guarantee all customer funds in Silicon Valley Bank (SVB) after a series of bad decisions and a run on deposits led to the bank's collapse. The decision creates bad incentives for financial institutions and their customers.
The Federal Deposit Insurance Corporation (FDIC) is supposed to guarantee money at insured banks up to $250,000 per depositor, per bank, in each account ownership category.* In this case, however, it will fully protect all depositors with no limit.
