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Silicon Valley Bank and Signature Bank “bail out”

Between the fall of 2008 and late 2009, the US Treasury injected more than $200 billion to recapitalize US banks, without any compensation. It has since recovered more than it invested. In the 2008 financial crisis, authorities spared shareholders and bondholders while propping up institutions, said David Smith, professor of commerce at the University of Virginia. US authorities may have taken extraordinary steps in recent weeks to assure depositors of failed lenders Silicon Valley Bank and Signature Bank, but they are avoiding parallels with bailouts of the 2008 crisis,what is the effect of bank bailouts on the economy ?

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