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It is bail-in regulatory / bank discretion. A ton of bail in regulations around the world have it yet few people know of it. People are finding out now. That’s
by cjbgkagh 4y ago
It is bail-in regulatory / bank discretion. A ton of bail in regulations around the world have it yet few people know of it. People are finding out now. That’s the real risk, what if banks can no longer shunt their risk on to ignorant investors, that is a big part of their business model.
- danielmarkbruce 4y agoYup... If people are investing in the securities of banks and don't understand the (incredibly complex) regulatory environment those banks operate in... they are going to lose their shirt. That being said, I don't think most banks are deliberately trying to put risk on the naive. They mostly just assume the buyers of the securities understand the situation. Even people inside a bank don't have a crystal ball on where things are going. A sophisticated bank investor can often see the situation more clearly than someone in the bank.