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People are crying because this is just another case of the rules not applying to the wealthy. What's the point of FDIC caps if they magically don't matter when

People are crying because this is just another case of the rules not applying to the wealthy. What's the point of FDIC caps if they magically don't matter when your balances sufficiently exceed them? How is that not the epitome of too rich to fail?

pylua 4y ago
Rules for thee and not for me — insult to injury is that the higher costs from fidc insurance will just passed on to the non wealthy.
nine_zeros 4y ago
> People are crying because this is just another case of the rules not applying to the wealthy. How so? Literally the wealthy investors and executives of the bank lost all their stock wealth and compensation.
- landemva 4y ago
  Mark Cuban says he has $8-10M at SVB via his funded startups. Rich guy bailout to be paid by increased FDIC fees and reduced Fed 'earnings' paid to USA. Everyone is forced to pay so billionaire Mark Cuban gets his millions.
  - deleted 4y ago
    [deleted]
  - aik 4y ago
    The startups are the ones that get the funds now, right? The startup now is guaranteed to have the funds to pay their employees etc. Mark Cuban gets money if his investment in the startup is a success, and only then. I’m happy the startup can now survive. What exactly is the issue?
    - iancmceachern 4y ago
      The issue is the US public paid into the startup via the bailout and doesn't have the corresponding shares. It's making the general public pay for the down side while having the rich VCs get the upside
      - nine_zeros 4y ago
        > The issue is the US public paid into the startup via the bailout and doesn't have the corresponding shares. It's making the general public pay for the down side while having the rich VCs get the upside There is no tax payer money in the bailout because there is no bailout.
        kyawzazaw 4y ago
        isn't the insurance fund ultimately something the taxpayers would be backing since it is the something the banks pay into the FED?
        YeBanKo 4y ago
        Iirc SVB’s assets aren’t enough to cover all withdrawals, esp if sold now. FDIC is either taking of the risk or covering the diffs. Money has to come from somewhere.
        iancmceachern 4y ago
        A lot of the reputable coverage I'm seeing is saying that they don't want us to think its a bailout, but it's indeed a bailout.
        nine_zeros 4y ago
        > A lot of the reputable coverage I'm seeing is saying that they don't want us to think its a bailout, but it's indeed a bailout. Sounds like the coverage you are reading is either misleading you or is misled themselves.
        aik 4y ago
  - nine_zeros 4y ago
    > Mark Cuban says he has $8-10M at SVB via his funded startups. Rich guy bailout to be paid by increased FDIC fees and reduced Fed 'earnings' paid to USA. Everyone is forced to pay so billionaire Mark Cuban gets his millions. Did Mark Cuban mismanage the bank? Why should his deposits get penalized?

pylua 4y ago

Rules for thee and not for me — insult to injury is that the higher costs from fidc insurance will just passed on to the non wealthy.

nine_zeros 4y ago

> People are crying because this is just another case of the rules not applying to the wealthy. How so? Literally the wealthy investors and executives of the bank lost all their stock wealth and compensation.

landemva 4y ago
Mark Cuban says he has $8-10M at SVB via his funded startups. Rich guy bailout to be paid by increased FDIC fees and reduced Fed 'earnings' paid to USA. Everyone is forced to pay so billionaire Mark Cuban gets his millions.
- deleted 4y ago
  [deleted]
- aik 4y ago
  The startups are the ones that get the funds now, right? The startup now is guaranteed to have the funds to pay their employees etc. Mark Cuban gets money if his investment in the startup is a success, and only then. I’m happy the startup can now survive. What exactly is the issue?
  - iancmceachern 4y ago
    The issue is the US public paid into the startup via the bailout and doesn't have the corresponding shares. It's making the general public pay for the down side while having the rich VCs get the upside
    - nine_zeros 4y ago
      > The issue is the US public paid into the startup via the bailout and doesn't have the corresponding shares. It's making the general public pay for the down side while having the rich VCs get the upside There is no tax payer money in the bailout because there is no bailout.
      - kyawzazaw 4y ago
        isn't the insurance fund ultimately something the taxpayers would be backing since it is the something the banks pay into the FED?
      - YeBanKo 4y ago
        Iirc SVB’s assets aren’t enough to cover all withdrawals, esp if sold now. FDIC is either taking of the risk or covering the diffs. Money has to come from somewhere.
      - iancmceachern 4y ago
        A lot of the reputable coverage I'm seeing is saying that they don't want us to think its a bailout, but it's indeed a bailout.
        nine_zeros 4y ago
        > A lot of the reputable coverage I'm seeing is saying that they don't want us to think its a bailout, but it's indeed a bailout. Sounds like the coverage you are reading is either misleading you or is misled themselves.
        aik 4y ago
- nine_zeros 4y ago
  > Mark Cuban says he has $8-10M at SVB via his funded startups. Rich guy bailout to be paid by increased FDIC fees and reduced Fed 'earnings' paid to USA. Everyone is forced to pay so billionaire Mark Cuban gets his millions. Did Mark Cuban mismanage the bank? Why should his deposits get penalized?