Life buoy

This is no time for lectures on moral hazard, former U.S. Treasury Secretary Lawrence Summers said ahead of the raft of U.S. policy initiatives announced on Sunday to stabilize the financial system in the wake of the collapse of Silicon Valley Bank. Maybe, but might we at least be allowed a brief lament?

Depositors in SVB are to be made whole even if their cash holdings with the failed lender are above the $250,000 cap that’s meant to apply to U.S. bank deposit insurance. As in the financial crisis of 2008-2009, the authorities have stepped in to ensure that depositors don’t lose money.

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Chris Hughes is a Bloomberg columnist covering deals.

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