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betteryet | 3 years ago

They did let the bank fail. The bankers lost any wealth that was tied to ownership of the bank. Of course, a bunch of them sold shares as they saw the end near, but that's something the SEC should prosecute as insider trading.

They're saving customers to a large extent, who could have done more diligence when choosing a bank, you could argue. But they still feel pain going through this process. And not saving them would have worse consequences for the entire system.

discuss

unmole|3 years ago

> Of course, a bunch of them sold shares as they saw the end near

Insiders file 10b5-1 plans with their brokers well in advance to automate the sale of their stock. It's very unlikely that the sales had anything to do with recent events.

cypherpunks01|3 years ago

In this case, 30 days in advance. So it's much more like a transaction delayed by a few weeks, rather than one planned months/years in advance with no knowledge of how stock price will perform in the future.

542458|3 years ago

There are lots and lots of ways to use 10b5-1 plans and still trade on insider information, I.e., selective cancellation or trading on longer-term insider info.

wiz21c|3 years ago

> They're saving customers

No, they use taxpayer's money to save taxpayers.

I'm fine with that as soon as we save taxpayer's money and punish those who triggered the accident and replace them by people who are paid by taxpayers money, under direct control of the state.

astrange|3 years ago

All banks are under control of the state via bank regulators. And those bank execs just lost their jobs when the banks stopped existing, so you got that.

There is no sensible reason to want the state to own every bank; that means you're accepting a silly amount of risk and not diversifying your investments. What you want is a social wealth fund, not owning a random industry you don't like.

jalapenos|3 years ago

Pain is important. It teaches you to be more careful.

Lionga|3 years ago

Oh sweet summer child.

The bankers sold most of the shares before it happened, because they knew it was coming.

unmole|3 years ago

Do you know what a Rule 10b5-1 plan is?