Re:Joint Statement by the Department of the Treasury, Federa...
by joe_the_user on Monday March 13, 2023 @05:57PM
(#35143513)
The problem is that guaranteeing a bank and regulating it's investments still changes the incentives for the bankers. The banker has an incentive make an investment that can presented as "prudent" but which actually has a large up and down side. The banker keeps the upside, the bank's depositors are protected from the downside and the worst the investors face is losing their existing capital.
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