2 ms·

You should check out the banking industry sometime if you'd like to interact with a competent auditor. Compliance gets taken quite seriously in an industry whe

by bob1029 7mo ago

You should check out the banking industry sometime if you'd like to interact with a competent auditor. Compliance gets taken quite seriously in an industry where one of your principal regulatory bodies has the power to unilaterally absorb your business and defenestrate your entire leadership team in the middle of the night.

jacquesm 7mo ago
They could. But they don't. I've seen this up close. The regulatory bodies as a rule are understaffed, overworked and underpaid. I'm sure they'd love to do a much better job but the reality is that there are just too many ways to give them busywork allowing the real crap to go unnoticed until it is (much) too late.
- close04 7mo ago
  Because they’re put there as a box ticking exercise without ever being given the power or resources to be able to do damage or negatively impact the bottom line of the big rule breakers. It’s just supposed to maintain the appearance of doing something without ever supporting these activities for real. For the most part they are a true Potemkin village. If the risk is diffuse (just some average Joe suckers will lose money) I wouldn’t hold my breath that anyone is controlling for real.
  - jacquesm 7mo ago
    I hate to say this but I suspect you are right.
soc2fraud 7mo ago
Usually on a Friday night. If you see a bunch of rental cars hanging out near a bank HQ on a Friday afternoon, get all your money out before the doors close. FDIC is about to wreck shop.
- maxbond 7mo ago
  They do it on a Friday so they can work through the weekend and reopen the bank on Monday as a branch of a different bank which is solvent, so I wouldn't worry too much. I'd be more worried about putting my money in a fintech not regulated by FDIC or NCUA (though many contract with a "real" bank so that your money is still protected).
  - soc2fraud 7mo ago
    That’s fine for your checking account which FDIC likely covers. But if they merge it into another bank and you have a payroll account there with 2MM sitting in it, you can have a real problem. People use JPMC, with all its fees, for a reason.

by bob1029 7mo ago

jacquesm 7mo ago

They could. But they don't. I've seen this up close. The regulatory bodies as a rule are understaffed, overworked and underpaid. I'm sure they'd love to do a much better job but the reality is that there are just too many ways to give them busywork allowing the real crap to go unnoticed until it is (much) too late.

close04 7mo ago
Because they’re put there as a box ticking exercise without ever being given the power or resources to be able to do damage or negatively impact the bottom line of the big rule breakers. It’s just supposed to maintain the appearance of doing something without ever supporting these activities for real. For the most part they are a true Potemkin village. If the risk is diffuse (just some average Joe suckers will lose money) I wouldn’t hold my breath that anyone is controlling for real.
- jacquesm 7mo ago
  I hate to say this but I suspect you are right.

soc2fraud 7mo ago

Usually on a Friday night. If you see a bunch of rental cars hanging out near a bank HQ on a Friday afternoon, get all your money out before the doors close. FDIC is about to wreck shop.

maxbond 7mo ago
They do it on a Friday so they can work through the weekend and reopen the bank on Monday as a branch of a different bank which is solvent, so I wouldn't worry too much. I'd be more worried about putting my money in a fintech not regulated by FDIC or NCUA (though many contract with a "real" bank so that your money is still protected).
- soc2fraud 7mo ago
  That’s fine for your checking account which FDIC likely covers. But if they merge it into another bank and you have a payroll account there with 2MM sitting in it, you can have a real problem. People use JPMC, with all its fees, for a reason.