3 ms·
Well in theory private lenders don’t have depositors, so there’s no average joes to protect.
by toasterlovin 1y ago
Well in theory private lenders don’t have depositors, so there’s no average joes to protect.
- wkat4242 1y agoThe lenders aren't the only one needing protection. Society does as well. We don't need another 2007.
- disgruntledphd2 1y agoThe trouble is that the banks are lending these private lenders the money, so any large issues are gonna hit the banks hard, with consequent impacts on the money. While some regulations post the GFC were necessary, it seems like a bunch of the rules just pushed this risk (bad loans) onto the balance sheets of non-banks. Not sure if it was worth it, especially given the large hit to worldwide productivity.
- lesuorac 1y agoThe private lender fails and the bank records losses is definitely better than the bank failing.
- CGMthrowaway 1y agoWhen the central bank talks about systemic risk, too big to fail, etc - depositors are the least of its worries, if it worries about them at all (FDIC has that covered)