|
|
|
|
|
|
by gjsman-1000
1191 days ago
|
|
|
If I were head of a smaller or regional bank, I’d be running for the lawyers, because I would find it very hard to believe that FDIC would extend their offer in a fair and reasonable manner to smaller banks. If they don’t, it’s arguably a form of extortion, using mandatory fees on small banks to only protect big ones. How would that be legal? To avoid legal hot water, the FDIC may find themselves to equally protect every bank which might quickly turn out regrettable… > Did we just accidentally invent a fully socialized national banking system? According to Kevin O’Leary, YES. He also makes a point about how the management was "idiotic" because if they had just gone to JP Morgan, or Wells Fargo, or another big bank - and said, "hey, we got a short term cash problem with a lot of treasuries," they almost certainly could have come to a very low-interest loan arrangement that would have prevented this outcome. |
|
|
I’ve read a similar sentiment elsewhere about their inability to raise the necessary amount without hitting full panic button.
Whether idiotic or not, the CEO sold before this. Maybe there’s a bigger play