This raises an interesting question: should business deposits be insured for more than they are now, which is $250,000?

Businesses have to have cash deposits to make payroll and pay bills.  Many businesses are large enough that they would need more than $250,000 on deposit in order to operate.  A business would have no way to know a bank was in danger of failure.

A free market ideally would operate in such a way that, as much as possible, companies are responsible for their own gains and losses.  But this is not something the depositors in SVB could have anticipated.

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