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And what I’m saying is that managers knew this and paid themselves with funds that could have went to depositors. Depositors have the same right to be made who

And what I’m saying is that managers knew this and paid themselves with funds that could have went to depositors. Depositors have the same right to be made whole as any other victim of a crime. The government has fdic and insures up to $250k. That’s what our taxes paid for. If we wanted to insure depositors for greater amounts, we would have paid more taxes. This was an eyes wide open situation. Depositors could have managed their large sums of cash better. They didn’t, choosing to save money. Now it sucks. Another analogy would be that if a couple skipped life insurance and leased a Porsche. And now the wage earner has been murdered and the remaining spouse is asking the government to pay for their dead spouses wages, while still driving the Porsche.

valleyer 4y ago
> The government has fdic and insures up to $250k. That’s what our taxes paid for. FYI, FDIC insurance coverage is funded by premium payments from covered banks, not from "our taxes". https://www.fdic.gov/about/what-we-do/index.html https://www.fdic.gov/about/what-we-do/index.html
grey-area 4y ago
This wasn’t a crime, it was a bank run because this bank apparently wasn’t great at managing risk and the risk free assets they bought are not as safe as they used to seem when they bought them now that rates have risen substantially, it could (and probably will this week) happen to other banks like First Republic. If the fed dithers today that seems a lot more likely. EDIT - seems Signature bank has failed as well today, and the Fed has decided to guarantee deposits at both.