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Other laws, which have nothing to do with depositors and how to treat them. I’m confused as to why you think these two issues are linked. I would hope these ex
by grey-area 4y ago
Other laws, which have nothing to do with depositors and how to treat them. I’m confused as to why you think these two issues are linked.
I would hope these execs are prosecuted and any bonuses clawed back but that would be under the purview of a different agency (sec) not fdic, and is not an immediate concern, whereas a massive financial shock and 100s of companies closing due to lack of funds is.
- bentlegen 4y agoI’m not a lawyer, but it’s unclear to me - a random internet observer - that anyone performed anything illegal. It strikes me more as a bet gone colossally wrong, basic human mismanagement, capitalism in action, etc.
- baq 4y agoDepends on the deals with startups and their founders. Look up tied selling.
- tome 4y agoI think the implication is that if you make depositors take some of the risk then they'll be more proactive in their oversight of their banks' executives. I'm not sure how realistic that assumption is in practice though ...
- KptMarchewa 4y agoIn practice, they yell for what's happening - making depositors whole through government means. Or maybe additional regulation.