Quote:
Originally Posted by Bill Bumface
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).
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I mean we don't expect any bank to be able to handle a bank run, but to me as someone who doesn't really understand the backend of banking, if I have have cashflow of $10 mil per month, which all goes into a bank, and then I use that to pay my employees, etc....it is extremely concerning that just by the fact that I am utilizing a bank like SFIB who clearly didn't have their ducks in a row, that money could be gone on Monday when payroll happens.
As a business I literally didn't do anything wrong, other than picking the wrong bank to work with.