3 ms·

It's really pretty easy to understand. Imagine if some tech company went from fine to bankrupt overnight in a surprise to everyone. All the shareholders zeroed,

• Analemma_ 4y ago
  > I can see shareholders and employees of SVB rightly being pissed off. It's not your place to tell them they should not be. I mean... yes it is. I'm against zeroing depositors of failed banks, because (for better or worse) we've decided that banks should work like restaraunts and you shouldn't have to do a complicated risk assessment about how safe one is before deciding to do business there. But shareholders are a different story. If you invest in a company and they do dumb things and lose your money, that's at least somewhat on you - you're supposed to know what the company is doing before you invest, and potentially push for management changes if they're doing stupid things. Insulating shareholders from the bad decisions of their companies is an utterly unacceptable degree of moral hazard.
  • tensor 4y ago
    Where did I say they should be insulated? I said they are pissed off since you seem confused as to why. Imagine telling a laid off employee: you work for a tech company you're supposed to know what the company is doing before you join. If you get laid off that's how it's supposed to work! I don't understand why you are so upset? Does that resonate with you? Or do you still have no sympathy for all those people?