[amalter]

There is zero precedent for clawbacks from on demand accounts at a regulated financial institution. This isn't even a "capital B" Bankruptcy, so I have doubts clawbacks would be legal.

That would also throw gasoline on the fire as people cease to trust even withdrawn money as whole. It's now in your interest to get your money out of any bank showing any weakness as early as possible.

Clawback SVB money Monday and we'll have a run on First Republic Tuesday and possibly 20 other institutions by the end of the week until we get to Ally and that will empty the FDIC piggybank.

Which is why the cooler heads at the FDIC try to make all depositors whole. Hopefully they can find someone to take SVB's assets on in HTM valuation and maybe some government equity in exchange for ownership. (Remember the government made money on its equity deals in 2008).

[tome]

> It's now in your interest to get your money out of any bank showing any weakness as early as possible.

Wouldn't it be the opposite? It would lead to there being no incentive to withdraw since you'd only have to give it back.