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Banks failing is pretty rare, not 30 times a year. “Silicon Valley Bank is no more. It’s the first bank backed by the Federal Deposit Insurance Corp. to fail s
by smugma 4y ago
Banks failing is pretty rare, not 30 times a year.
“Silicon Valley Bank is no more. It’s the first bank backed by the Federal Deposit Insurance Corp. to fail since 2020.”
https://www.marketplace.org/2023/03/10/how-silicon-valley-bank-failed/amp/ https://www.marketplace.org/2023/03/10/how-silicon-valley-ba...
- justahuman74 4y agoI would argue that `since 2020` is still too frequent for most people
- shuckles 4y agoThere was a very uncommon event that began in 2020.
- pksebben 4y agothere was also a very uncommon event in '01, '08, '22.. .. at some point, we're gonna have to step back and take a look at how we're doing business. Something about our whole way of organizing society is busted.
- shuckles 4y agoNot sure how you come to that conclusion with the happenings discussed in this thread.
- TheOtherHobbes 4y agoAside from the crypto scandals, the insider dealing scandals, the money laundering scandals, the price and index fixing scandals, and the corruption scandals, there have been 562 bank failures since 2001. https://www.fdic.gov/bank/historical/bank/ https://www.fdic.gov/bank/historical/bank/ Finance is inherently an opportunist, if not outright criminal, industry which explodes regularly causing huge economic and political damage.
- shuckles 4y agoAppending scandal to an event isn’t having the persuasive effect you’re looking for. Finance is also the industry which helps us collectively coordinate our resources, grow our wealth for retirement, and facilitate risk taking. Every industry has issues.
- AnimalMuppet 4y ago562? Great. Now give me a context for that. How many banks are there? And, of those 562, in how many of them did the depositors lose money?
- Retric 4y agoWhich is probably well under 0.1% of total companies that failed over the same period. The thing is failed banks don’t mean depositors lose all their money. The point of banking regulation is fail fast so banks are taken out when they still have 98% of their depositors money not 8%. People with under 250k are made whole and people above that have already been compensated for their risk by higher interest rates. It doesn’t always work perfectly, but in many cases a failed bank just means people come in on Monday and there is a new sign on the building with little else changed.
- mirekrusin 4y agoAre you counting bailouts as failure or not?
- mjlawson 4y agoIt depends on the state of the market. During the banking crisis, 157 banks were closed in one year[1]. [1] https://www.fdic.gov/bank/historical/bank/ https://www.fdic.gov/bank/historical/bank/