They also lobbied to become more vulnerable. Greg Becker the CEO worked to get regulations removed that helped them get in this position by removing public liquidity stress test reports and reduce the frequency of liquidity stress tests.
Depositors failed to do their due diligence, the bank offered 'sweet heart' deals to get customers. Depositors should lose their pants and have to wait for the FDIC to liquidate before getting any funds.
No one deserves free, unlimited, zero risk access to depositors. If you want to do that, you should buy bonds, short eurodollars as hedge, and get loans against the bonds. None of this is free.
