Tag: FDIC

Posted on

There is no such thing as “moral hazard” surrounding this bank bailout.

What the “moral hazard” critics overlook is the economic impact on those of us who rely primarily on wages to get by. Hiccups in the current monetary and financial system in the immediate term that change the wage earners standard of living have a greater detrimental impact versus those individuals buttressed by the ownership of claims on income. While it behooves the wage earner to reduce his or her exposure to the current monetary and financial system, the short-term bandage on this injury should be applied. The wage earner should bear in mind that this fix is short-term and that it is up to us to seek out a longer-term solution. Continue reading There is no such thing as “moral hazard” surrounding this bank bailout.

Posted on

Interbank Market News Scan:  Does the State have an interest in sustaining SVB Financial? No.

Michael S. Barr, Vice-chair of the Board of Governors of the Federal Reserve System, warned the U.S. earlier this week that banks should take a careful and cautious approach to engaging in crypto-asset related activities.  Banks need to determine whether their crypto-related activities are “legally permissible” before engaging in them.  Mr Barr, who is responsible … Continue reading Interbank Market News Scan:  Does the State have an interest in sustaining SVB Financial? No.