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On reflection, one wonders why all bank deposits don't have insurance. I'm guessing the answer is: something something make more profit... E.g. my businesses
by dboreham 4y ago
On reflection, one wonders why all bank deposits don't have insurance.
I'm guessing the answer is: something something make more profit...
E.g. my businesses are required to carry liability insurance. I have to do that because we have big company customers who made it a condition of doing business with them. So why do big companies hand $nB over to another company for safe keeping but not require insurance?
- mixdup 4y agoThe only truly viable deposit insurance is from the government, because they can print money What good is private insurance from an insurance company if they go insolvent because of massive numbers of bank failures So, now the answer to your question is a political one: are we willing as a society and government to potentially put that much taxpayer money at risk. I think it's a perfectly valid discussion to have, but it's one we haven't had yet, and one we refuse to have until the shit has hit the fan
- schrodinger 4y agoIsn't it up to the depositor in a way? Normal people are 100% protected up to $250k, and then large investors can choose between boring, low interest, extremely safe banks vs high interest risky banks. Although as the analysis pointed out, the higher interest was nominal in this situation so it was a poor choice.