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By "zero fucks given by the government" do you mean the government got involved, effectively bought the bank, and took responsibility for 100% of deposits (most
by collingreen 2y ago
By "zero fucks given by the government" do you mean the government got involved, effectively bought the bank, and took responsibility for 100% of deposits (most of which were the balances of startups, ie venture capital investments)?
- deleted 2y ago[deleted]
- kortilla 2y agoNope, shareholders got wiped out and the bank was done as a bank. What you’re thinking of is FDIC which is completely the opposite of a bailout for the bank. It’s a bailout for depositors (a huge portion of which were normal people). Arguments for the FDIC protecting people from keeping money in bad banks is a different argument, but it most certainly isn’t a bailout. If you think going bankrupt and the FDIC seizing your company and wiping out shareholders is a bailout, you don’t know what a bailout is at all. That’s standard bankruptcy with an extra heavy boot on the throat from the government because they are ruthless about maintaining consumer confidence in the banking system.
- collingreen 2y agoI didn't say bailout. You said the government gave zero fucks but I think it actually went way above and beyond the normal FDIC insurance to make sure ALL depositors were made whole not just up to the normal 250k.