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Which is what's being done. Insured amount going out on Monday, dividends based on liquidation of assets going out over time. The fire is being managed, it's no
by Jtsummers 4y ago
Which is what's being done. Insured amount going out on Monday, dividends based on liquidation of assets going out over time. The fire is being managed, it's not like nothing is happening here. People are just pissed that the government and FDIC are doing what they've said they would do instead of something more, which was never promised.
- flappyeagle 4y agoPeople are worried about what this means for confidence in regional banks. The prudent thing to do right now is to pull your money out of your regional bank and move it to a GSIB and call it a day. This endangers regional banks and concentrates deposits into the large players. You can stand your moral ground here or you can risk a string of bank runs and systemic collapse. It might not even make a difference anyways with how slow we’ve been to act.
- mlyle 4y agoOn the flipside, moral hazard is a real problem too. Setting the precedent that your regional bank can do whatever and you'll be just fine isn't great, either.