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Why ? There aren't any bank to take on their market ? Individuals and companies won't stop having accounts or buying home or investmenting in equipment becaus
by hinata08 3y ago
Why ?
There aren't any bank to take on their market ?
Individuals and companies won't stop having accounts or buying home or investmenting in equipment because 1 bank 'gracefully' shuts down. Another one will take on.
But risking a crash like Lehman Brothers, Wirecard (a journalist nearly got charged with market manipulation in Germany for covering what really happened in this firm), FTX,... is the real self sabotaging for a country.
"Too big to jail" is not a service for the common good. It's just protecting friends.
We need real investigations into how this bank is run, and how others are run as well.
If this was genuinely just an IT incident, that's fine. But it raises questions obviously.
- BowBun 3y agoThe global economy is built on confidence which is derived from trust in financial institutions and whether governments act economically reasonably. It's not a matter of whether there's other banks that can take on the business. It's a matter of government intervention to that degree would rock confidence and cause a negative shockwave through the markets, which would most definitely affect you no matter how much or how little you have invested in the bank in question. New backers for loans made to the largest corporations and countries on earth, easily reaching billions if not trillions of dollars would need to be accounted for and reorganized. A primary source of funding for housing, infrastructure projects, etc. would be eliminated. I think you fail to see how deeply entrenched the largest financial institutions in the world are with modern society. Our governments literally depend on them to function because of the complexities of globalization.