Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC

Re:Joint Statement by the Department of the Treasury, Federa... by Rury on Sunday March 12, 2023 @11:33PM (#35130658)

I think that's dubious. If management can make off with enough money prior to being wiped out, and it won't be clawed back, then there's still potentially an incentive. So what if we lose our bank! We'll make off with millions investing other people's money imprudently anyhow.

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Re:Joint Statement by the Department of the Treasury, Federa... by skybrian on Monday March 13, 2023 @01:25PM (#35139091)

Okay, but how does punishing the depositors for management mistakes fix that? It definitely increases the damage, though.

The shareholders lose it all if the bank goes bankrupt. They should have incentive enough to watch over management. If they don’t notice, how does it help for depositors to have their money at risk too?

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