Seems like a rather large moral hazard if we don't?

At some point the courts should be able to say "ok fine you were the directors responsible for the company you're going to prison n years, sorry."

Bet we'd see a lot more documentation suddenly appear.

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cool_dude85 10 months ago | parent | next [-]

But think of the innovation we'd lose out on by jailing executives doing this. A bank that gives sub-market interest and "invests" part of the difference in a scratcher game that they run. Oh, and for complex legal reasons, they're not a bank, but they do offer bank accounts at a different bank.

	▲	chefandy 10 months ago \| parent [-]
		I think you're absolutely on-point. There's literally no end to the amount of money they could innovate for themselves if we'd just let them do whatever the hell they want and then claim it's too confusing to figure out what happened when they steal it all. Won't someone think of the innovators?!

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suzzer99 10 months ago | parent | prev | next [-]

I'd bet 95% of fintech startups are just walking moral hazards to begin with.

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JumpCrisscross 10 months ago | parent | prev [-]

> Seems like a rather large moral hazard if we don't

Based on what? The catastrophic failure rate is low. And if you’re sensitive to that risk, don’t bank with a firm that’s selling you on sticking it to the man or whatever.