Re:Big Banks Agree to Historic $30B Deposit Injection in Fir...
by pksebben on Friday March 17, 2023 @10:52AM
(#35197863)
my problem with this, and I think others share it, is that nothing came out of the situation to fix the conditions that made it happen.
The best we got was the Volcker rule (RIP). and even that wasn't nearly enough. If you're "too big to fail" you're _too fucking big_.
Other countries did less well out of the event. The UK still owns the emergency nationalised RBS. AIB blew up Ireland quite badly; Kaupthing even worse for Iceland, and so on down to Cyprus where the depositors were deemed to "dirty money" to get a bailout and actually took losses.
I also don't think people have considered what the alternative society of "contagion" would have looked like, where enough banks had failed that a significant fraction of companies could not make payroll and millions of Americans suddenly could not buy anything.