Lloyd's of London has a reputation for insuring anything. What isn't known is how they do it.
If you become one of Lloyd's backers, you're essentially pledging your entire net worth, right down to your 'cufflinks'. The risk Lloyd's accepts isn't shared across by everyone. You are assigned to a specific contract(s). Some contracts are risker than others. You have no say in where you are assigned.
Talk about your conflicts of interest: the lowest-risk policies were inevitably written for friends, and those less favored often bought the higher-risk policies. This was the Lloyd’s way for a long time.
Banks used to be privately held. And just like Lloyd's, the bank's owner was personally liable for the success, or failure, of the bank. Then, in 1956, the Bank Holding Company Act was passed. Now bank owners weren't liable for failing. Taxpayers were. If a bank was 'too big to fail', Uncle Sam stepped in and saved them. At taxpayer expense.
The 2008 recession shook up the politicians. So, in 2010, the Dodd-Frank Act passed. It included provisions for bank 'bail-ins'. Now, if a bank fails, Uncle Sam's not stepping in. YOU ARE. Failing banks are now 'allowed' to take your deposit money to keep the bank floating.
Did you notice who is not on the hook? That's right - the 'owners' of the bank. The idiots that cause a mess necessitating a 'bail-in' are free and clear of the fallout.
Lloyd's of London has a reputation for insuring anything. What isn't known is how they do it.
If you become one of Lloyd's backers, you're essentially pledging your entire net worth, right down to your 'cufflinks'. The risk Lloyd's accepts isn't shared across by everyone. You are assigned to a specific contract(s). Some contracts are risker than others. You have no say in where you are assigned.
goldfinger
Banks used to be privately held. And just like Lloyd's, the bank's owner was personally liable for the success, or failure, of the bank. Then, in 1956, the Bank Holding Company Act was passed. Now bank owners weren't liable for failing. Taxpayers were. If a bank was 'too big to fail', Uncle Sam stepped in and saved them. At taxpayer expense.
Bank Holding Company Act of 1956
The 2008 recession shook up the politicians. So, in 2010, the Dodd-Frank Act passed. It included provisions for bank 'bail-ins'. Now, if a bank fails, Uncle Sam's not stepping in. YOU ARE. Failing banks are now 'allowed' to take your deposit money to keep the bank floating.
Did you notice who is not on the hook? That's right - the 'owners' of the bank. The idiots that cause a mess necessitating a 'bail-in' are free and clear of the fallout.
protecting yourself from a bank bail-in
Fucking politicians ...