Banks borrow short and lend long, and that’s both extremely useful and prone to catastrophic failure. So we have insurance for when things go wrong and regulati

Banks borrow short and lend long, and that’s both extremely useful and prone to catastrophic failure. So we have insurance for when things go wrong and regulation to ensure that unscrupulous banks don’t abuse the insurance by taking on too much risk. So saying FTX is like a bank is sort of true, but only implies that it needed the same regulation banks need. Oh and also there’s the part where they were lying about treating customers’ money the way honest pre-FDIC banks did, and instead appear to have stolen it.