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The little guys did not do fine. The FDIC was having to step in and handle a bank failure at a small US bank every couple of days in 2009-2011. Some of them the
by makomk 9y ago
The little guys did not do fine. The FDIC was having to step in and handle a bank failure at a small US bank every couple of days in 2009-2011. Some of them they managed to find a buyer for, a few resulted in the outright loss of all funds beyond the FDIC insurance limits. This didn't get nearly the media attention that the big banks did, but it happened nonetheless.
- candiodari 9y agoWhilst I might agree that the GP post is a bit misleading it's still the truth. America has tens of thousands of little banks. And yes, there were a few months of a bank failure a day. That still means only a very small minority of small banks really got into trouble. It's also not very strange for little banks to, on occasion, get into trouble close and/or merge and/or get taken over. A normal level for the US would be about one per month. Europe is still at more than one per week, for the EU (and frankly it's going down because EU is running out of banks to fail, not because conditions are getting better). That said, if you compared the odds of a small bank needing a bailout versus a big bank needing a bailout, you would in fact find that small banks didn't really need bailouts. They also never got them, needed or not, and everything was fine ... well, mostly. ALL of the big ones needed a bailout, and if they wouldn't have gotten them, ... well we won't know, will we. It would have been very, very bad for stocks, certainly.