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What do you mean you're supposed to trust government regulators though? Regulators don't prevent bank failures. What account holders can (more or less) trust is
by throwawaylinux 4y ago
What do you mean you're supposed to trust government regulators though? Regulators don't prevent bank failures. What account holders can (more or less) trust is the deposit insurance scheme to insure them for a well-known amount.
If somebody deposits significantly more than FDIC in a bank account, would you advise them to research the bank's financials or not?
- vkou 4y agoIf you are setting that as the bar for depositor competency, congratulations, you've just guaranteed that every single business and HNW individual will only bank with a too-big-to-fail bank.
- throwawaylinux 4y agoAccess to some basic understanding of financials and risk is not out of reach of many businesses and "NHW individuals" that would be inclined to deposit that much. Your assertion is false. You would do well to be quite certain of what you're talking before you try being snarky. And I am not setting any bar. That is the bar which has been set by the reality of things as they are. Don't complain to me if you don't like it.