Not going to happen. Supreme court has ruled depositors as investors. The pecking order after 250K is just slightly better than unsecured loan and shareholders. Who would have though Lehmans 2.0 replay itself again.
YC: We ask for depositors to be made whole
41–47 of 47 posts
Re: YC: We ask for depositors to be made whole
#42Earlier quoted context omitted.
They did put money on a "sure bet", bonds and mortgage backed securities. Due to the fuckery with interest rates, those sure bets were suddenly unfavorable (at least if you have to cash them in early, which they did). The fact that stocks were sold tells me they knew about this going belly up eventually.
What I would like to see come out of this is the banking system offer risk tiered accounts. No-risk tiers are FDIC insured, but the bank is not allowed to move that money anywhere. Higher tiers offer higher levels of risk, deposits are not guaranteed but receive better internet rates, and the banks are able to “gamble” in whatever way they choose. The current structure is fundamentally broken and no amount of regulat…
We already have this: it's called a "brokerage account", or various other names: "mutual fund", "ETA", "company stock", etc.
If you want higher interest (gains) and risk, you buy stock, or a fund.
Finally, if the bank can't move money anywhere, there's no reason for the bank to exist, and there's no way for it to pay interest (in fact, they'd have to charge you to keep your money). The whole way a bank works is by investing your money somewhere, then giving you a fraction of the proceeds (as interest). You seem to not understand at a fundamental level how a bank works.
Re: YC: We ask for depositors to be made whole
#43I ask for all the taxi drivers who were completely fucked by Uber and Lyft to be made whole: https://www.nytimes.com/2018/12/02/nyregion/taxi-drivers-sui... I ask for VC funded delivery services to stop stealing tips from gig workers: https://www.nbcnews.com/business/business-news/why-instacart... I’d also like to see social media held accountable for the harms done to children and communities and for our existing la…
> sociopathic libertarians calling for government to make sure they never suffer any consequences for their failure to adequately manage risk FYI libertarians typically do not want the government / taxpayers to bail out companies for bad decisions.
No True Scotsman fallacy
Re: YC: We ask for depositors to be made whole
#44Earlier quoted context omitted.
What I would like to see come out of this is the banking system offer risk tiered accounts. No-risk tiers are FDIC insured, but the bank is not allowed to move that money anywhere. Higher tiers offer higher levels of risk, deposits are not guaranteed but receive better internet rates, and the banks are able to “gamble” in whatever way they choose. The current structure is fundamentally broken and no amount of regulat…
We already have this: it's called a "brokerage account", or various other names: "mutual fund", "ETA", "company stock", etc. If you want higher interest (gains) and risk, you buy stock, or a fund. Finally, if the bank can't move money anywhere, there's no reason for the bank to exist, and there's no way for it to pay interest (in fact, they'd have to charge you to keep your money). The whole way a bank works is by in…
That's not what I'm suggesting at all. A tiered structure would be normal banking (checking/savings) accounts with differing levels of risk depending on the owner's tolerance and willingness to pay (no/low risk, charged something like 0.5% per year) or be paid (very high risk, and paid to store money there because the bank is lending it out at higher rates).
Re: YC: We ask for depositors to be made whole
#45Earlier quoted context omitted.
> sociopathic libertarians calling for government to make sure they never suffer any consequences for their failure to adequately manage risk FYI libertarians typically do not want the government / taxpayers to bail out companies for bad decisions.
No True Scotsman fallacy
I see your point that the quality of discourse is very low and that most ideological labels are worn haphazardly without the wearer really understanding what philosophy he/she is claiming to support.
Many sloppy "pro business" kinds of people claim to be libertarians but they really want a lot of government intervention in some markets and not others. This is just an example of typical hypocrisy and not proof that people who actually do support libertarian philosophies are like that.
Re: YC: We ask for depositors to be made whole
#46Earlier quoted context omitted.
No True Scotsman fallacy
I see your point that the quality of discourse is very low and that most ideological labels are worn haphazardly without the wearer really understanding what philosophy he/she is claiming to support. Many sloppy "pro business" kinds of people claim to be libertarians but they really want a lot of government intervention in some markets and not others. This is just an example of typical hypocrisy and not proof that pe…
The problem is you're looking for ideological purity, and such a thing doesn't really exist. Poll everyone who identifies as "libertarian" and you'll find that almost none of them meet your standard.
Re: YC: We ask for depositors to be made whole
#47Earlier quoted context omitted.
I see your point that the quality of discourse is very low and that most ideological labels are worn haphazardly without the wearer really understanding what philosophy he/she is claiming to support. Many sloppy "pro business" kinds of people claim to be libertarians but they really want a lot of government intervention in some markets and not others. This is just an example of typical hypocrisy and not proof that pe…
The problem is you're looking for ideological purity, and such a thing doesn't really exist. Poll everyone who identifies as "libertarian" and you'll find that almost none of them meet your standard.
So then what is the point of using the label the way the OP did?