5 ms·
Is this any different without steps 5 and 7? I don't understand how the FDIC actions change the incentives here.
by BCM43 4y ago
Is this any different without steps 5 and 7? I don't understand how the FDIC actions change the incentives here.
- paulddraper 4y agoPresumably, #2 is only possible with a government guarantee for depositors.
- auntienomen 4y agoCan't do 8 without those!
- rullelito 4y agoA lot of people would lose money and the system would have to change.
- fidgewidge 4y agoWay fewer people hate you at the end, which is a meaningful disincentive otherwise.
- Dem_Boys 4y agoThe FDIC's actions indicate that the insured deposit limit is really unlimited instead of the advertised $250,000. This takes away a huge risk associated with recklessly handling depositors money because now the FDIC will swoop in and make ALL depositors whole.