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Why do you think that's the only way this can work? When a bank fails, the FDIC typically facilitates new ownership over the course of a weekend. The workers s
by eli 3y ago
Why do you think that's the only way this can work?
When a bank fails, the FDIC typically facilitates new ownership over the course of a weekend. The workers still have jobs and the branches reopen on Monday. The top executives are out and the investors take a loss.
If it is impossible for any other company to take over the service than the company is too big in the first place and should be broken up or nationalized. The free market doesn't work without meaningful competition.
- gruez 3y agoWhat's the difference between "corporate execution" and "large fine" then?
- eli 3y agoWell an obvious difference is that one directly removes executives who were responsible. But sure, I'm amenable to a sufficiently large fine. Even just allowing class action lawsuits (despite their flaws) would be a lot better than the status quo. I'm just saying that a "corporate death penalty" doesn't necessarily harm customers. A large fine that an entrenched monopolistic provider can just pass on to customers the same way they do other "compliance costs" doesn't really help much.