Excellent points. The whole concept of expecting bailouts enables banks to take risks without any risk - a recipe for disaster.
The management and owners of the bank should pay for their foolish management. There should be no bail out. The FDIC protects investors up to $250,000. So the only people being hurt are those that had deposits of greater than $250,000 total. If you are that wealthy, then you have a responsibility to be aware of the risks of where your money is. This isn't the same as "mom and pop" doing routine banking at their local bank. Our government (the FDIC) system assures "mom and pop" that they are okay and not at risk (and thus don't have the burden of worrying if their $10,000 is safe in their local bank).
It's not like this hasn't happened before. This isn't a "surprise".
Excellent points. The whole concept of expecting bailouts enables banks to take risks without any risk - a recipe for disaster.
The management and owners of the bank should pay for their foolish management. There should be no bail out. The FDIC protects investors up to $250,000. So the only people being hurt are those that had deposits of greater than $250,000 total. If you are that wealthy, then you have a responsibility to be aware of the risks of where your money is. This isn't the same as "mom and pop" doing routine banking at their local bank. Our government (the FDIC) system assures "mom and pop" that they are okay and not at risk (and thus don't have the burden of worrying if their $10,000 is safe in their local bank).
It's not like this hasn't happened before. This isn't a "surprise".