I haven’t commented previously because I’m not a banking expert but it has become clear that this bank was run by woke idiots who made many bad investments and the chickens came home to roost. I do know something about securities law and the bank president who sold $3.5 million shortly before the bank failed needs to be prosecuted.

But that’s not the reason for this rant. I am concerned about the potential bailouts. Listen I think that depositors should be protected to a certain extent and I will say up to one million dollars. The reason I’m for this is because the $250,000 insurance was set when the FDIC came into existence in 1933 and at that time it was a fortune during the depression. Although no one reading this would turn it down, that is a modest amount of money today and so I think the law should be amended to raise the insured amount to one million.

Now in case you didn’t know it, each of your accounts are insured up to my preference of $1 million. Checking and savings accounts are considered to be the same account, joint accounts are considered to be different accounts and you could also set up trust accounts but I don’t want to get into the weeds. The point is that under my proposal you could deposit the million in your account and your spouse could deposit another million in her account and then you could put another million into a joint account and it would all be assured. You could also do the same thing at as many separate banks as you want and it would all be insured.

So here’s my point, I have no problem covering depositors up to a point but I have no interest in bailing out investors in the bank. They are no different than investors in any corporation. If the corporation goes under, you are SOL. You should have done your due diligence and I don’t feel sorry for you.

If we and yes I mean we bailout the shareholders then all we are doing is rewarding bad decisions and that will lead to more bad decisions because we will have indicated that you will never pay the consequences of your actions.

Getting back to my previous point, if you have millions of dollars and don’t know anything about investing or whatever, and unfortunately too many don’t, hire a financial planner and don’t be an idiot.

And one final thing that really makes me in favor of limiting depositors recovery to a million is that apparently Harry and Megan had a huge amount in that bank!