4 ms·

I'm not sure what you imagine FDIC does with the bank's seized assets. But let's say you think they should be vanished some reason, and good for nothing. Hundr

by cmurf 4y ago

I'm not sure what you imagine FDIC does with the bank's seized assets. But let's say you think they should be vanished some reason, and good for nothing. Hundreds of thousands of employees from tens of thousands of small businesses aren't getting paid salaries for the last 1-3 weeks. And aren't getting paid this week. And very likely are out of a job. Same for those businesses vendors and subcontractors. Hundreds of thousands left without a health care plan with two weeks notice because premiums will go unpaid and afterall the employer is the true contractor of the plan, if they go out of business because most of their cash deposits were just destroyed. That seems bad. What sort of influence levers do these depositors have over their bank's investment policies either before of after the fact? It seems pointless.

anon291 4y ago
How about we expect FDIC to sell the assets at market value and then expect companies to take the 30 % cut in assets over 250k. No one is suggesting anyone burn svbs assets. Only that we do not print more money to make up the difference between the face value and the market value
- cmurf 4y ago
  >How about we expect FDIC to sell the assets at market value and then expect companies to take the 30 % cut in assets over 250k. Why should a bank's depositors take haircuts before its bondholders and shareholders? >Only that we do not print more money to make up the difference between the face value and the market value The difference is made up by FDIC special assessment on banks.