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Why should it matter whether it's deposits or equity or bonds? The instrument is irrelevant to the logic - if I have to back it on the downside then I want a pi
by frgtpsswrdlame 4y ago
Why should it matter whether it's deposits or equity or bonds? The instrument is irrelevant to the logic - if I have to back it on the downside then I want a piece of the upside too.
- hanklazard 4y agoBusinesses aren't making upside by putting their working capital in a bank checking account. Mine was making like 0.1%, it's negligible. I would be happy to socialize that upside for higher limits on deposit protection. Equity and bond holders are a totally different group of people, they are investors in that bank. They are explicitly taking risk on the bank as an investment, not as a basic piece of their financial plumbing.
- frgtpsswrdlame 4y ago>I would be happy to socialize that upside for higher limits on deposit protection. Glad we agree then, that's pretty much all I'm looking for.