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This is the classic, textbook dilemma that the CEO of a bank/crypto exchange faces. You can lie, and say everything is great. If enough people believe you, you
by actionablefiber 4y ago
This is the classic, textbook dilemma that the CEO of a bank/crypto exchange faces.
You can lie, and say everything is great. If enough people believe you, your bank is safe and you live happily ever after. If they don't believe you and pull their money, then you committed fraud and will go to court.
Or you can tell the truth, and say everything will not be great if everyone pulls their money. Then people will definitely pull their money. You will be sad, because your employer has turned into a smoldering crater and your equity is worth zero, and everyone will blame the bank run on you, but you are probably legally safe.
I think the only real thing you can do is make sure no one with credibility ever asks you if you are solvent. That is hard to avoid though, if you are a bank and you have to raise money by selling equity.
- notch898a 4y agoIf you read the prospectus for almost any publicly listed equity, it will say something along the lines of "our company is a dumpster fire and could implode at any minute." In slightly nicer terms. They will say the exact opposite in the verbal quarterly conferences, but they put that in writing just so they can say you've been adequately advised.