2 ms·
So what is the risk premium they were collecting? The time savings of not managing multiple accounts? Is it really desirable for larger depositors to carry the
by tempestn 4y ago
So what is the risk premium they were collecting? The time savings of not managing multiple accounts? Is it really desirable for larger depositors to carry the inefficiency of spreading their deposits across multiple banks, if the net liabilities of the banks end up being the same?
- 331c8c71 4y agoDoesn't matter. The rules are the rules.
- 331c8c71 4y agoThere should have been 1) repayment of the insured amounts 2) liquidation of assets 3) repayment of the rest (likely with a haircut). 4) (optionally) a legislative reform (if the current system seems not adequate anymore)
- dtf 4y agoThe risk premium was access to a large and very cheap credit facility: https://twitter.com/jonwu_/status/1634250770555219970 https://twitter.com/jonwu_/status/1634250770555219970
- r_hoods_ghost 4y agoNet doesn't matter to the individual firm. And who should carry it? Everyone else who had the gumption to spend, what, a few man hours, to guarantee that they won't end up not being g able to make pay roll?