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In a just world these people would be stripped of everything they own.
by shrewduser 4y ago
In a just world these people would be stripped of everything they own.
- Robotbeat 4y agoThe bank owners? Yes, they have.
- titzer 4y agoNot a single one of them will be poor. Ever.
- favorited 4y agoThe bank's owners were its shareholders, and it was publicly traded. Literally anyone could own a share of it. https://www.google.com/finance/quote/SIVB:NASDAQ https://www.google.com/finance/quote/SIVB:NASDAQ
- JetSpiegel 4y agoHow can you get the money to buy the shares, if you are a regular worker? Maybe get a loan from a bank?
- joegibbs 4y agoIt was trading at about $200 a share, you don't need a loan to be a shareholder. Besides, you can get fractional shares so even if $200 is too much you could still be a shareholder.
- AnnikaL 4y agoYou might save money, or your employer or government might invest money for your pension in the bank's stock.
- Robotbeat 4y agoLots of normal people own stocks. You can save money and invest it for retirement, etc. It’s risky because… Well… Public companies you invest money in can go bankrupt.
- feross 4y agoWhat did the depositors do wrong? You're saying in a just world, the individuals and businesses who just decided to open a checking account—at a top-20 US bank—deserve to lose everything? What did they do wrong?
- Workaccount2 4y agoDidn't insure their holdings. And maybe you're thinking "Who would've thought.." Probably people who work in finance, like VCs, that can do risk analyses.
- deltree7 4y agoDo you check the the inspection sticker of every elevator, train, restaurant, building that you enter?
- JetSpiegel 4y agoI would if I worked in an elevator company.
- DubiousPusher 4y agoI think it's fine if the new precedent we're setting is that the FDIC backs any amount of money on deposit for everyone going forward. If that is not the new precedent, then this is a bailout of rich individuals and some specific corporations. That doesn't seem a problem to you? If the savings and loan of Bismarck North Dakota fails, is the government bailing out the car lot owner and the wheat farmer and the home builder?
- danans 4y ago> If the savings and loan of Bismarck North Dakota fails, is the government bailing out the car lot owner and the wheat farmer and the home builder? Yes, the depositors would get bailed out, but the bank itself would be sold for parts. That might constrain the way that retail deposits are allowed to be managed. A start would be undoing the Trump administration's rollback of Dodd-Frank stress testing requirements for smaller banks [1]. It will probably also mean the FDIC will require more insurance on deposits. This will all hurt profitability of banks, and reduce risk for depositors. 1. https://www.cnbc.com/2018/05/24/trump-signs-bank-bill-rolling-back-some-dodd-frank-regulations.html https://www.cnbc.com/2018/05/24/trump-signs-bank-bill-rollin...
- viscanti 4y agoThe owners should be forced to sell the whole business for $1.
- quartz 4y agoI mean, that's literally what happened with the UK arm of SVB: https://www.cnbc.com/2023/03/13/hsbc-buys-silicon-valley-bank-uk-protecting-deposits-.html https://www.cnbc.com/2023/03/13/hsbc-buys-silicon-valley-ban...
- __MatrixMan__ 4y agoWould a just world have bankers in the first place?
- zamnos 4y agoBankers? Absolutely. We can nit pick which bankers are the "good" ones vs the "bad" ones, but as a whole, there are useful functions they perform for society. Usury though? Possibly not.
- __MatrixMan__ 4y agoI'm not saying they're useless, or evil. They're just playing their part. I'm saying that in a just world we'd have found a different way to solve the problems that they solve. For instance, I can get a loan from a bank for a mining operation that will contaminate the ground water somewhere. Thanks to bankers, I can expect that the locals will accept the money I'm paying my employees--since they can't distinguish it from any other money--even though they'd be much better off refusing it and continuing to drink clean water. The way we practice money involves a loss of agency to whoever has less of it. A just world would require the consent of the locals, our world only requires that I prove to a banker that the operation will be profitable.
- quijoteuniv 4y agoAmen