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She owned more of a bank than she was supposed to, and used that bank to get bigger loans than she would normally be able to get, and then she bought commercial
by IncreasePosts 3y ago
She owned more of a bank than she was supposed to, and used that bank to get bigger loans than she would normally be able to get, and then she bought commercial real estate with those loans.
Where does the net harm come in here? I guess other mega rich property developers were prevented from acquiring the commercial real estate...maybe a few hundred millionaires were harmed by this billionaire. Is there anything more than that?
- pickleberto 3y ago[dead]
- nordsieck 3y ago> Where does the net harm come in here? The harm comes from the possible worlds where the loans don't get paid back. That's the reason why there are loan limits in the first place.
- TylerE 3y agoAlso if banks are loaning money to her, that's money that's not being loaned to other people.
- notaustinpowers 3y agoNot entirely. She used almost 1,000 fake loan applications to to appropriate the $12.5b from the bank. Then 3 employees at the bank committed suicide from October 6th-14th in 2022 which resulted in a bank run. There are 82 other defendents, many of them being leadership at the bank, with 5 of them in hiding.
- scarmig 3y agoThere is some efficiency loss: capital was deployed less efficiently than it would have otherwise been, and that costs money, which means it costs lives. Depending on the particularities of the corruption/fraud, that could be in the millions, could be in the billions. So anywhere from one human life to thousands. It's just diffuse, so we can't pinpoint a particular person who died due to it, just society at large. (Not saying I support the death penalty for this.)