4 ms·

Though the WAMU failure in 2008 nearly broke the FDIC. You know the cartoon of the snake eating the elephant? It was like that. Samll banks, on the other hand,

Though the WAMU failure in 2008 nearly broke the FDIC. You know the cartoon of the snake eating the elephant? It was like that. Samll banks, on the other hand, fail every week and the FDIC cleans them up so fast no one even notices.

ceejayoz 4y ago
The WAMU failure also serves as a pretty good example of the other levers available in traditional banking regulation (and the pressure on the government to find a fix) that Coinbase is unlikely to be able to avail themselves of.
- Finnucane 4y ago
  The WAMU bankruptcy was difficult for the FDIC to manage, and there was no ready buyer to take the remains. But if there had been no FDIC to manage it, the result would have been catastrophic failure. Like Lehman, but with more retail banking customers getting wiped out.
  - polski-g 4y ago
    Congress would have given the FDIC a blank check if they needed.
    - JumpCrisscross 4y ago
      > Congress would have given the FDIC a blank check if they needed Congress already did this. The FDIC reserve fund is mostly an accounting and accountability thing. The act creating the FDIC gives it the explicit backing of the United States’ “full faith and credit.”
thaway2839 4y ago
So basically a massive worst case financial crisis led to something almost, but not actually, failing. Sounds like the system worked extremely well.
- labrador 4y ago
  I feel the same about the Trump presidency. He and his cohorts attempted to subvert the system, pen testers if you will, but the system responded and survived. In the end, we should thank Trump for helping to improve the American system of rule of law and governance.
  - ceejayoz 4y ago
    The jury is out for a while on whether the result was "survived" or "gave a better playbook for next time". Those on the left would tend to argue the lack of consequences thus far encourages a more competent attempt.
    - labrador 4y ago
      I'm confident that the people in the system have woken up to the fact that a large scale attack can come from within the system, which was previously unthinkable, and adjustments will be made to help prevent it from occurring again.
      - troon-lover 4y ago
      - stouset 4y ago
        I really wish I saw what you saw. Instead, I see utter complacency.

ceejayoz 4y ago

The WAMU failure also serves as a pretty good example of the other levers available in traditional banking regulation (and the pressure on the government to find a fix) that Coinbase is unlikely to be able to avail themselves of.

Finnucane 4y ago
The WAMU bankruptcy was difficult for the FDIC to manage, and there was no ready buyer to take the remains. But if there had been no FDIC to manage it, the result would have been catastrophic failure. Like Lehman, but with more retail banking customers getting wiped out.
- polski-g 4y ago
  Congress would have given the FDIC a blank check if they needed.
  - JumpCrisscross 4y ago
    > Congress would have given the FDIC a blank check if they needed Congress already did this. The FDIC reserve fund is mostly an accounting and accountability thing. The act creating the FDIC gives it the explicit backing of the United States’ “full faith and credit.”

thaway2839 4y ago

So basically a massive worst case financial crisis led to something almost, but not actually, failing. Sounds like the system worked extremely well.

labrador 4y ago
I feel the same about the Trump presidency. He and his cohorts attempted to subvert the system, pen testers if you will, but the system responded and survived. In the end, we should thank Trump for helping to improve the American system of rule of law and governance.
- ceejayoz 4y ago
  The jury is out for a while on whether the result was "survived" or "gave a better playbook for next time". Those on the left would tend to argue the lack of consequences thus far encourages a more competent attempt.
  - labrador 4y ago
    I'm confident that the people in the system have woken up to the fact that a large scale attack can come from within the system, which was previously unthinkable, and adjustments will be made to help prevent it from occurring again.
    - troon-lover 4y ago
    - stouset 4y ago
      I really wish I saw what you saw. Instead, I see utter complacency.