Universal Deposit Guarantee Seems Inevitable After SVB

Maybe this goes without saying, but on the off chance it's not obvious, it bears mentioning: It's going to be very difficult for US officials to explain any decision not to protect uninsured deposits in the event of additional bank failures. The definition of a "systemically important bank" is at least somewhat objective, even if we can quibble over the details. If an institution is large enough and interconnected enough that a disorderly (note the emphasis) collapse would entail a global parox