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If the deposits are insured, a bank failure is far less likely in the first place. It might be efficient for the FDIC to require complex and expensive financia
by danenania 4y ago
If the deposits are insured, a bank failure is far less likely in the first place.
It might be efficient for the FDIC to require complex and expensive financial engineering just to keep operating capital safe, but it's hostile to businesses, especially small ones, and is out of reach for many.
- dragonwriter 4y ago> It might be efficient for the FDIC to require complex and expensive financial engineering just to keep operating capital safe, but it’s hostile to businesses The FDIC exists to protect against a general collapse of banking like the one that preceded the Great Depression, not as a generalized subsidy to business.