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0 pointsbjornsing3y ago0 comments

> They yield less, but surely that's better than "the FDIC seizes your bank and your equity goes to zero."

For the individual banker, perhaps it's not? If rates stay low they get a fat bonus, if they go up they just get a new job somewhere else.

0 comments

actionablefiber3y ago

Depends on the equity/cash split of your compensation. A failed bank is worth zero. Cash is cash.

MrMan3y ago

I think the chief risk officer at this bank left last year, they may have been the person who got the bank into these positions. it will be interesting to see if there is news coverage about that person's role in the crisis.

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0 pointsbjornsing3y ago0 comments

> They yield less, but surely that's better than "the FDIC seizes your bank and your equity goes to zero."

For the individual banker, perhaps it's not? If rates stay low they get a fat bonus, if they go up they just get a new job somewhere else.

0 comments

actionablefiber3y ago

Depends on the equity/cash split of your compensation. A failed bank is worth zero. Cash is cash.

MrMan3y ago

j / k navigate · click thread line to collapse