REUTERS/Eduardo Munoz
- The rescue of Signature and SVB depositors leaves the incentive for bank runs, a Wharton professor said.
- Regulators want to treat those banks as special cases, Itamar Drechsler told Insider.
- "The contagion risk is that there is a run on other banks that are financed by a large fraction of uninsured deposits."
The rescue of uninsured depositors at Signature Bank and Silicon Valley Bank still risks further bank runs, according to Wharton finance professor Itamar Drechsler.