5 ms·

Given that their liabilities excess their assets by a few billions, there's even less than zero in there.

• paxys 4y ago
  Well good thing shareholders aren't on the hook for those, and the floor value of the shares is zero. Imagine a world where that wasn't the case though.
  • rvnx 4y ago
    It's called Switzerland, where shareholders of Private Banks used to have unlimited liability (now it has changed).
  • jakeinspace 4y ago
    Well, that world would be closer to a true free market. The legal protection of limited liability makes modern stock markets work, but it is absolutely a massive benefit given from the working+middle class towards investors (of course there is an overlap between those groups). It’s my first argument any time I hear someone complain about capital gains tax being double taxation on top of corporate taxes.