If the taxpayer isn’t on the hook for their $2 billion loss why should I care? That’s between them and their customers.
Exactly. This is just shuffling deck chairs, looking “busy” and “concerned.”
“If the taxpayer isn’t on the hook for their $2 billion loss why should I care? That’s between them and their customers.”
Agreed, except for the fact that taxpayers remain on the hook for the losses of investment banks. Break them up into either commercial or investment banks. There were clear simple laws on the books that worked for many decades that kept the rules simple and protected taxpayers.
We taxpayers shouldn’t have bailed out the banks. Bush, Paulsen, Obama, Geithner and Congress were hoodwinked into saving shareholders. Instead these banks should have been permitted to go bankrupt and all shareholder equity lost along with investments marked to market. The US Treasury could have guaranteed deposits and money markets. The banks then reorganized and the subsequent IPO used to reimburse taxpayers. In the end it would have been less costly and the bankers and investors who took risk would have learned.