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If you want that kind of security, normal banks are a better place for your money. Traditional finance may have its drawbacks but at least customers losing thei
by WJW 4y ago
If you want that kind of security, normal banks are a better place for your money. Traditional finance may have its drawbacks but at least customers losing their deposits because the bank went bankrupt is extremely rare these days.
- JanSt 4y agoIsn‘t it technically the same? Your deposits would be used to pay back the banks debt before it would be given back to you? Yes, it‘s rare but the process seems to be the same?
- JumpCrisscross 4y ago> Your deposits would be used to pay back the banks debt before it would be given back to you No. In most systems, depositors are first. In America, banks don’t go bankrupt, but instead go into court-supervised FDIC receivership. I have some sympathy for those who lost money in the first few crypto failures. At this point, it’s fools being separated from their money.
- pjc50 4y agoYour deposits are bank debt. What happens in these situations is that liabilities (debts, including deposits, unpaid wages, rent etc) exceed assets (cash, investments), usually because some of the investments turn out to be worthless. So you get whatever fraction of the deposit that can be covered by the sale of the remaining assets. This is why Western governments have bank insurance schemes to make the depositors whole in these cases.
- AllegedAlec 4y agoOver here banks decided that they own your money, and that if you withdraw large enough sums they're allowed to charge you for it. Banks are just as bad, if not more so because of how ingrained into the political system that are.
- roflyear 4y agoOver where? Can you name an instance of a bank that did not allow people to withdraw money? Fees don't exactly count unless they are outrageous. Bank fees are usually fixed. Like $20 wire fee.
- AllegedAlec 4y agoThe Netherlands, and the ABN in particular. They've decided that if you take out more than 12K per year, each subsequent withdrawal will cost a fixed amount plus a percentage of the amount withdrawn.
- pjc50 4y agohttps://www.abnamro.nl/en/personal/payments/fees/withdrawing-depositing-cash.html https://www.abnamro.nl/en/personal/payments/fees/withdrawing... 12k cash. You can withdraw to another financial institution without restriction.
- AllegedAlec 4y ago> cash So what? It's your money. Why would you have to pay a goddamn 0.5% plus whatever over anything over that amount?
- JetSpiegel 4y agoCost of handling suitcases full of cash?
- AllegedAlec 4y agoNo, I don't buy that. We already pay them for the privilege of letting them usure us.
- pjc50 4y agoThere was a huge string of bank failures in the 2008 era. However, in those cases, the system worked; failing banks were immediately nationalised and recapitalized in order to keep allowing people to withdraw money. There were a few exceptions, such as Cyprus and Iceland, where banks either had to "haircut" deposits or were for a time unable to allow withdrawals.