It's the Silicon Valley corporate playbook:
Privatize the gains, Socialize the losses.
The corollary is: socialism for the rich, unabashed cutthroat capitalism for the rest of us.
Privatize the gains, Socialize the losses.
The corollary is: socialism for the rich, unabashed cutthroat capitalism for the rest of us.
VaaS, Vandalism as a Service.
When has FDIC reimbursed more than the “up to” limit? Everything I’ve read regarding this suggests that this may be moral hazard, at least in the short term. The remaining amount should come from liquidation of the failed bank’s assets or by the acquiring bank, not the FDIC.
Only it turns out that "insurance" is a fraud, as it is misrepresented. The premiums are advertised as being for backstopping up to 250k in the account, but it turns out this was a fraud and actually it's whatever arbitrary amount they choose all the way up to the biggest holder in the bank. And when they're finished, they'll assess a "special assessment" which totally isn't a tax, nevermind the licensees have no choice but to pay it.