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this post was submitted on 22 Aug 2024
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Given that he was embezzling bank funds to funnel into a fake crypto scam, and the people who those funds belonged to were not in fact the bank, and the article suggests those people were not made whole, I'm just gonna say that it's not about the bank, it's about the people who lost shit like their life savings to this a-hole.
It sounds like no customer with the bank lost anything. Only investors who I assume are well off anyways.
The banks customers were not the only people who he stole from. However, I concede the point.
Oh yeah. That's fair.
I guess the silver lining here was that it could have been so much worse but thank goodness for FDIC.
That's still 47 million of everyone's money that could have been better spent
Yeah, that's 47 million in tax payer dollars. So instead of stealing millions from a few people, it's pennies from millions of people. Definitely a lot of better things that money could have gone to.
Plenty of people lost most of their retirement savings - FDIC only goes up to 250k which isn't enough for super frugal FIRE. And definitely not enough when you get old and medical bills are crazy high in Murica.
Ok so I decided to read into this a little more. On FDICs website it says all customer funds should be available backing up my assumption that no customer of the bank lost any money: https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/heartlandtristate.html
It says:
That contradicts statements on https://arstechnica.com/tech-policy/2024/08/ex-bank-ceo-gets-24-years-after-falling-for-crypto-scam-causing-bank-collapse/
But it seems like they didn't let it fail completely and transferred all assets and most liabilities to Dream First Bank? That would be nice for the granny with more than 250K in the account.
Actually 250k is the minimum for FDIC. Also I'm only basing my information on this single article but it says he stole 47 million and then the article goes on to say that FDIC absorbed the 47 million loss. Given this wording it sounds like every single dollar was covered.