5 ms·

That's why this needs to be a law - to create an incentive where one would otherwise not exist.

• neltnerb 5y ago
  I think the slightly longer version is that going bankrupt is not usually a discrete step in time and that planning and negotiating between creditors, debtors, and the government is going on. So if there is a law there is a government interest in customers being treated right before, for instance, big owners get a payout from a sale of assets. If there are literally no assets there's very little that can be done though, you could threaten the owners with jail but what can they even do if there is no money? If there were a law it would almost necessitate something more like unemployment insurance where companies are forced to hold insurance to deal with this in a predictable way if they shut down or close a customers account. Actually, unemployment insurance might be a pretty good analogy. If a company goes out of business and you get laid off as an employee you get unemployment mostly paid for out of money the company paid to an insurance policy. In this case instead of being triggered by unemployment it's triggered by loss of access. In the same way, if a company is closing a lot of accounts their insurance rates go up.