Re:Binance lays off over 1k Employees
by charcircuit on Friday July 14, 2023 @04:25PM
(#36729447)
To the customer it's the same. People don't want to be told that they will get their funds in a few years, they want it now. Liquidating all your assets is going to reduce the total value of all of your assets to potentially below your liabilities. If it doesn't good job, that means the bank is safe against bank runs, but if not they aren't.
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That’s an absurd assertion. No, to a customer, a bank run is rapidly dealt with via the FDIC; we just had a great example of this with SVB. Madoff’s victims were not so lucky.
Re:Binance lays off over 1k Employees
by charcircuit on Saturday July 15, 2023 @12:42AM
(#36733602)
>we just had a great example of this with SVB.
They were acquired by another bank. Someone could similarly acquire a Ponzi scheme and pay out the people who wished to withdraw.
Re:Binance lays off over 1k Employees
by martin8412 on Saturday July 15, 2023 @03:52AM
(#36734567)
The FDIC made that happen. SVB became illiquid which triggered FDIC intervention. The bank was shut down by the FDIC and the assets were sold off to First Citizens bank. Executed without a hitch and no customer assets lost. The only ones who lost money were investors in the bank.
The FDIC would never make someone acquire a Ponzi scheme. Someone could in theory do it, but why would they? It's just throwing away money.