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Could you explain further? By nuance do you mean the idea that they’re telling a “white lie” to keep smaller banks from overextending and intend to bail them ou
by dahdum 4y ago
Could you explain further? By nuance do you mean the idea that they’re telling a “white lie” to keep smaller banks from overextending and intend to bail them out anyway? I do think that’s part of it, but it’s still going to cause capital flight.
- dahfizz 4y agoThe FDIC stepped in this one time, where's the guarantee they will step in every time to cover uninsured deposits?
- VagueMag 4y agoThe implication of the above is that they will not step in every time, but only when they decide (in what is surely a very transparent, consistent, and fair process) that the failing bank in question is "systemically important."