Re:Amazon terminates iRobot deal, vacuum maker to lay off 31...
by pjc50 on Tuesday January 30, 2024 @04:41AM
(#39188114)
Banks have counterparty risk in the way that robot vacuum companies don't. Letting the banks go bankrupt would have destroyed a lot of perfectly viable businesses among their customers.
The cloud companies will count as TBTF too for the same reason. Although it's harder to see how Amazon might get into a "we'll have to switch the datacenters off tomorrow unless we get bailed out" financial position", since it's easier for them to trade as a going concern, if there was a risk of that happening they would definitely get a bailout.
Also, remember that the bailouts were in almost all cases loans.
The cloud companies will count as TBTF too for the same reason. Although it's harder to see how Amazon might get into a "we'll have to switch the datacenters off tomorrow unless we get bailed out" financial position", since it's easier for them to trade as a going concern, if there was a risk of that happening they would definitely get a bailout.
Also, remember that the bailouts were in almost all cases loans.