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Comment by dasil003 | Hacker News Reader

What happened to the executives, board, and shareholders? I honestly don't know as I haven't followed that closely, but to me those are the most important three questions, and in that order, because that determines the level of moral hazard.

I'm less concerned over semantic arguments of what technically constitutes a bailout. Personally a stable banking system is important to me, as is accountability for risky investment strategies. I have a hard time seeing the situation is black and white enough to jump to a conclusion on exactly what the delta is between what happened and what should have happened.

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The executives have been fired, the board has been fired, the shareholders have been zeroed out.

The shareholders are currently suing the board and the executives for running the bank into the ground.

Ten years from now, once all the long-term investments settle, if there's any money left over, the shareholders might be entitled to two turnips and cup of coffee from Uncle Sam.

As far as 'The guilty getting their just deserts', this is a rare example of the world mostly working in a just way.

Really?

There are jurisdictions where executives responsible for this sort of failure would be shot and have their assets confiscated.

Neither is likely in this instance.

It sounds like you're advocating for summary execution. That's not really done in the civilized world. What do you really mean?

I think he's arguing for going beyond zeroing out the shareholders.

That's an uncharitable reading.

There'd be a trial before their assets are seized and they're executed.

If being civilized has led to clown world, perhaps alternate modes of civilization should be instituted.

I believe the entire executive is without a job. Likewise with board. Shareholders will be able to get what they can that is left over after depositors are made whole, but that seems like it will be effectively zero.

As for consequences beyond that? Unsure.

Hopefully the CEO (now on his second failed bank) doesn't "fail upwards". I mean it's one thing to have a poorly performing bank on your resume... it's another to have two banks forcibly closed by the FDIC.

Wiped out.

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