> The bank doesn't exist anymore and its shareholders got nothing. The customers' reward is they can make payroll. What bailout?
Depositors knowingly took a risk by keeping more than $250K in an individual bank account. Rather than allow depositors to face the consequences of that decision, the government will now be making an exception to their own rule and covering depositors' losses. That's a bailout.
If a company would have been unable to make payroll because of this, it would have been a direct result of their failure to adequately assess and mitigate risk.
Depositors knowingly took a risk by keeping more than $250K in an individual bank account. Rather than allow depositors to face the consequences of that decision, the government will now be making an exception to their own rule and covering depositors' losses. That's a bailout.
If a company would have been unable to make payroll because of this, it would have been a direct result of their failure to adequately assess and mitigate risk.