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the fees are not voluntary and other banks have no reason to want their customers to see examples of people getting wiped out by bank failures

• jonhohle 4y ago
  Your neighbor sets off fireworks in his living room and burns his house down. Everybody in your neighborhood with the same insurance policy immediately gets hit by a new fee that was not previously contracted, the neighbor walks away without a house, but also with his mortgage payed off. In what world do we live in that a government agency can demand a new mandatory fee over the course of a weekend. This whole thing is bonkers. “The ultimate result of shielding men from the effects of folly, is to fill the world with fools.”
  • dyno12345 4y ago
    people seeing a bank fail will worry that their own bank could fail, which could lead them to withdraw en masse which will cause their own banks to fail, and so forth. this scenario is bad for everyone.
    • jonhohle 4y ago
      We just lived through this 15 years ago, and that’s not what happened at the time in a situation where many, many more banks were exposed to significantly higher risk. SVB had a short-term liquidity crisis, followed by botching a funding round to solve the crisis (along with some internal issues). They were a relatively small bank whose assets likely would have been gifted to another bank in exchange for covering the liabilities.