Part 7/11:
Historically, early intervention might have prevented the crisis. Musk advocates for a government buyout of SVB’s deposits through a capital injection, thus preserving its value and avoiding a chain reaction of failures. Interestingly, Ackman reveals he was willing to participate in such a rescue, which could have minimized systemic risk and even turned a profit. Instead, the government’s decision to allow SVB to fail without a comprehensive guarantee is set to concentrate risk further in the six or seven "systemically important" banks, increasing the fragility of the overall financial system.