4 ms·
No depositors have been wiped out because we are changing the rules as we go. In the end it will be the little guy or the general tax payers that will get screw
by sschueller 4y ago
No depositors have been wiped out because we are changing the rules as we go. In the end it will be the little guy or the general tax payers that will get screwed while the ones that knowingly took dangerous risks got a defacto bailout by the rules being changed in their favor at the last minute.
- matwood 4y agoAre you saying depositors knowingly took dangerous risks?
- deleted 4y ago[deleted]
- opportune 4y agoI doubt depositors who at best got a bit more yield more on savings accounts benefitted nearly as much in aggregate as FRB employees (who got big bonuses) or the people who got extremely good terms on mortgages from FRB (I’ve heard sub-3% even for jumbo)
- astrange 4y agoBank executives normally get fired and lose all their shares when the FDIC shuts down a bank.
- xp84 4y ago> general tax payers FDIC isn't taxpayer funded though, right? It's funded by insurance paid by banks. Personally I haven't given a dime to a bank my whole adult life other than mortgage interest, so I'm confident saying I'm not bearing the cost of FDIC covering depositors. > the ones that knowingly took dangerous risks got a defacto bailout Depositors, the only ones who got "bailed out," were not informed of whatever investment choices were made by these banks. Occam's razor: Do you think they would have gotten any depositors at all if they'd advertised "There's a small chance our bank will fail and you'll lose everything if interest rates go up by about 400bps from their current all-time low"? Also these banks weren't paying like, insane 15% interest rates or something -- they may have been a bit better than average, but not in too-good-to-be-true territory.