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?
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?