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kmbxyz t1_jebv6ap wrote

Reply to comment by Kesshh in Bank Failures 2005 - 2023 - Should we be worried? [OC] by tomaskutac

They should. But when they do, the people who made the decisions often come out unscathed, and the problems transfer to other people.

For example, when SVB was failing. Top executives sold their shares and paid out large bonuses to staff during the months before the collapse. Then when the collapse happened, the bank simply dissolved and the FDIC picked up the bill. The institution failed, but the people who ran it into the ground didn't.

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kmbxyz t1_jebvvfy wrote

I think we should be worried about bank failures because the impact can cost the government greatly and can ultimately make life a lot more difficult for the little people.

I pulled the majority of my money of my bank when SVB crashed. I might not have needed to, but it feels better to be prepared.

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thehourglasses t1_jedgvqb wrote

Odd. You mention how a bank failure hurts everyone yet admit to actively contributing to the problem.

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