Quote:
Originally Posted by Azure
Well that isn't surprising at all. What did we expect would happen?
My issue here is the lack of oversight leading up to this. Up till a few weeks ago they had like a A credit rating? I don't get how something like this gets to the point where thousands of small businesses can't afford to do payroll, and not because they actually can't, but because their deposits, which they've worked hard to secure, are gone.
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Yeah, it's funny. I've read online comments about "see, this is what happens when you don't let the free market do it's thing". Which is baffling to me, the risk taken by these banks would be way higher without regulation. The failure here is that existing regulations don't actually provide enough protection, and innocent people were still able to be wiped out. There's also a secondary failure of businesses to be able to manage their risk accordingly, but some of the prescriptive conditions regarding their deposits in order to get funding really had them held hostage by those with the $ (VCs).