Re:Joint Statement by the Department of the Treasury, Federa...
by svnt on Monday March 13, 2023 @12:53AM
(#35131245)
No, the point is that shareholders of the bank are investors in the bank, and investment comes with the risk of loss. Depositors in a bank are not investors in that bank.
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Re:Joint Statement by the Department of the Treasury, Federa...
by yawpitch on Monday March 13, 2023 @03:12AM
(#35132201)
> Depositors in a bank are not investors in that bank.
No, they’re not. But until just now depositors in any other bank assumed the risk for any deposit in excess of $250K… and if these depositors weren’t morally different than the depositors that would absolutely have lost their wealth in excess of $250K when their chosen bank did a stupid thing, then they’d have paid the piper just like you and I would have.
These special depositors are getting special treatment and aren’t suffering what countless non-special depositors have suffered… the rules are changing because of who took the risk, that’s the very definition of moral hazard at work.