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The police are a government entity - banks are unelected private companies. The fine was tiny, it's a nominal slap on the wrist.

arcticbull 5y ago
> The police are a government entity - banks are unelected private companies. My point was to do with charter. The difference between the two situations is one is legal and one is illegal because it's an activity carved out for a specific group. Private or government is not a meaningful distinction. For instance, doctors are private-sector individuals but performing medicine is their exclusive charter. If you offer back-room plastic surgery you're going to prison. Fractional reserve banking is how money is created and destroyed. It's created by retail banks (when loans are originated) on behalf of the federal reserve which is chartered to do so by congress. The federal reserve manages the money supply in part through these private banks, under their supervision and charter, to maintain low, consistent inflation and maximum employment. While protecting the deposited assets via the FDIC. When a private individual hits print and synthesizes 60 billion ersatz dollars for their own benefit or the benefit of a small group of entities, it's quite likely to be a crime of one sort or another. Seems like we'll know for sure sooner rather than later. > The fine was tiny, it's a nominal slap on the wrist. It was IMO a trial balloon for a federal suit - the one their executive team got target letters for, announced today. I've maintained this the whole time, and it was also the consensus among attorneys on crypto twitter. This is how the justice system operates under these circumstances. The wheels of justice turn slow. The NYAG settlement is a scathing indictment of fraud and garbage business practices. Honestly there's not a single thing redeeming Tether or its leadership team. It's pretty clear at this point you're trying to defend the indefensible and it's time to ask yourself why. Would you react the same way if this settlement was between Wells Fargo and the NYAG? If not, why are you holding Tether to a different standard?

arcticbull 5y ago

> The police are a government entity - banks are unelected private companies. My point was to do with charter. The difference between the two situations is one is legal and one is illegal because it's an activity carved out for a specific group. Private or government is not a meaningful distinction. For instance, doctors are private-sector individuals but performing medicine is their exclusive charter. If you offer back-room plastic surgery you're going to prison. Fractional reserve banking is how money is created and destroyed. It's created by retail banks (when loans are originated) on behalf of the federal reserve which is chartered to do so by congress. The federal reserve manages the money supply in part through these private banks, under their supervision and charter, to maintain low, consistent inflation and maximum employment. While protecting the deposited assets via the FDIC. When a private individual hits print and synthesizes 60 billion ersatz dollars for their own benefit or the benefit of a small group of entities, it's quite likely to be a crime of one sort or another. Seems like we'll know for sure sooner rather than later. > The fine was tiny, it's a nominal slap on the wrist. It was IMO a trial balloon for a federal suit - the one their executive team got target letters for, announced today. I've maintained this the whole time, and it was also the consensus among attorneys on crypto twitter. This is how the justice system operates under these circumstances. The wheels of justice turn slow. The NYAG settlement is a scathing indictment of fraud and garbage business practices. Honestly there's not a single thing redeeming Tether or its leadership team. It's pretty clear at this point you're trying to defend the indefensible and it's time to ask yourself why. Would you react the same way if this settlement was between Wells Fargo and the NYAG? If not, why are you holding Tether to a different standard?