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Will that not cost anyone anything? If so then sure, let's do it! If it costs more than a dime, though, let's not.
by kreeben 4y ago
Will that not cost anyone anything? If so then sure, let's do it!
If it costs more than a dime, though, let's not.
- matwood 4y agoMaking depositors whole is important and should happen. Confidence in the banking system is important. A company that needs banking should not be subject to the same risk as a shareholder.
- Ekaros 4y agoIf depositors gained single penny of interest on their deposits. They should have been certain there is some risk. Including losing money above 250k. And they have less than zero right to cry when risk realises.
- Eisenstein 4y agoDefine 'cost'. If losing faith in the banking system gets people to disinvest and hoard under their mattress do you count that as 'no cost'?
- jmye 4y agoDefine costs, specifically. What are the 'costs' of ensuring that depositors have their money, while taking over long-term SVB investments that the government can wait out? What are the 'costs' of tens of thousands of job losses? What are the specific 'costs' of significant centralization of banking, as any new VC would immediately require a start-up to move it's money to JPM or GS?
- citizenkeen 4y agoThe cost is that we keep publicizing risk and privatizing gains. SVB took advantage of Trump-era deregulation to make more profit and now that they've screwed up they want help. The people who deposited money at SVB profited from those choices and now they also want a bailout.
- bradleyjg 4y agoWhat are the 'costs' of ensuring that depositors have their money, while taking over long-term SVB investments that the government can wait out? Net present value is a well defined concept. No need for scare quotes.