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It's not the taxpayers that are picking up the bill, it's the banks, and probably the customers. It ends up to pretty much the same crowd, but it depends how th
by m00x 3y ago
It's not the taxpayers that are picking up the bill, it's the banks, and probably the customers. It ends up to pretty much the same crowd, but it depends how the banks will make up those fees on their balance sheets. They could just choose to reduce dividends if they wanted to.
- justapassenger 3y agoI’m not 10 years old to think banks will cut profit. Nor they should.
- m00x 3y agoThe point is that they won't assign the losses equally across all members. This might have no effect on large banks since they're getting more members from fleeing regional bank members, and smaller regional banks to be less competitive. Maybe larger banks will cut marketing spend, and just keep fees low, or hike up fees on low net worth members to cut keep the top X%. They will most likely want to make this loss transparent to the users they want to keep, and banks have a lot of levers they can pull. Disclaimer: I work as a SWE at a neobank.
- reducesuffering 3y ago> It's not the taxpayers > probably the customers Practically every person in the US has a bank account, so...
- kelnos 3y agoI think you'd be surprised how many people in the US are unbanked -- around 6M households (so if we go by the average household size, 15M people) in 2021. Granted, this number has been dropping over time, for better or worse. Also consider that most banks in the US are not being hit with this $16B bill. If you bank at one of the thousands of other banks, you won't be affected by this. And if you do bank at one of these banks, and they choose to increase fees or lower interest rates, you're free to vote with your wallet and move your deposits elsewhere.
- apple4ever 3y agoAnd those customers are tax payers, being forced to pay something by the government.