Trusting US to keep to its agreements and promises is so lol. The US has a bigger military, why the fuck would we do that?

https://twitter.com/twittarmatthaus/status/1636247148663644160

  • Melitopol [none/use name]
    ·
    2 years ago

    EU is saying SVB was too small to allow all depositors to withdraw.

    Central to those regimes was imposing losses on owners, bondholders and other unsecured creditors, including depositors with funds exceeding their country’s guarantee limit.

    Owners, bondholders and creditors I couldn't care less about but depositors even in a tech sector bank like SVB have lots of cash in deposits which they use for payroll and other expenses. Not to say, it'll cause problems in other banks too (or rather, the problems would've been much worse).

    Imo all the failed banks should be nationalized and the investors given nothing and the top management jailed (:xigma-male: way) but neoliberalism is dogshit.

    However, a European regulator said that claim was a “joke” as US banks were likely to pass the cost on to their customers. “At the end of the day, this is a bailout paid for by the ordinary people and it’s a bailout of the rich venture capitalists which is really wrong,” he said.

    If EU cared that much about evil vulture capitalists, they would keep banking under public sector. But they didn't do that because markets good or whatever.

    https://www.ft.com/content/5e4a8dde-c053-4510-8cd9-8aecb9082a6e

    • mkultrawide [any]
      ·
      2 years ago

      I've been going back and forth on this. I'm starting to lean towards that they shouldn't have insured depositors and should have guaranteed payroll up to a certain amount instead. These companies put all of their eggs into one basket because it paid a higher return, which means higher risk. Not only the bank, but many of their customers have fought against regulation or stayed quiet while the banking industry and SVB pushed to be exempted from regulation. If they want their cash fully insured, then depositories should, at the very least, be regulated like public utilities.

    • Trustmeitsnotabailou [none/use name]
      ·
      2 years ago

      So the eu would of let them all fail apparently. And they would be good little fools to do so. American companies would sweep in and purchase billions worth of companies for probably very little.

      This is also why so many random financial people here are up set in the usa. The federal govt just saved a bunch of lousy companies, many that will never actually make money, denying other elites to absorb those companies. The feds just back stopped crypto and a bunch of tech vapor ware.