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by prewett
4503 days ago
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They are insured in the US, but that's a relatively recent development. Before 1934, when your bank failed, you lost your money, which was why there were runs on banks during financial panics (1929, for example). But it is important to note that there is nothing special about a bank that makes it insured. You could set up a bank that is not FDIC insured. Maybe offer people a higher rate of interest the entice them to come. You can set up a brokerage that is not SIPC insured, too. If MtGox were managing real money or stocks, and did what they are alleged to have done, I expect there would be some jail time. I doubt it's worth the Japanese government's time to criminally prosecute a few million dollars of new, unregulated currency-equivalent, but if they do prosecute, I'm guessing there is a serious risk of jail time here. |
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