[TrumpCard]

There's a whole generation in finance-and-venture-land today that actually believes high returns should come with low, if any, risks.
AYFKM?! When you're dancing on the edge of the cliff for a living, precipitous falls into the abyss are supposed to be part of "the deal", aren't they?

Can you be more specific about the high returns and risks you mean?

I don’t think you’re referring to the returns banks give on uninsured deposits. The returns aren’t high at all. Companies may foolishly believe that uninsured deposits aren’t risky, but it’s unclear to me that said companies get much of a reward for the risk. 

I also don’t think you’re referring to the fate of executives, or debt or equity holders, at SVB or Signature. They’re all fired or zeroed out. 

CS execs are largely going to be fired as well, and CS debt and equity holders are faring only a little better than their counterparts with SVB and Signature. 

We don’t yet know what’ll happen to the rest of the mid-sized banks currently under distress in the US, but it doesn’t seem as though they’re likely to get government bail outs. If anything, maybe they’ll get expensive sources of liquidity like Berkshire Hathaway provided to GS and BofA back during the 2008 financial crisis. If so, that is a form of punishment for taking excessive risk.

[TrumpCard]

There's a whole generation in finance-and-venture-land today that actually believes high returns should come with low, if any, risks.
AYFKM?! When you're dancing on the edge of the cliff for a living, precipitous falls into the abyss are supposed to be part of "the deal", aren't they?

Can you be more specific about the high returns and risks you mean?

I don’t think you’re referring to the returns banks give on uninsured deposits. The returns aren’t high at all. Companies may foolishly believe that uninsured deposits aren’t risky, but it’s unclear to me that said companies get much of a reward for the risk. 

I also don’t think you’re referring to the fate of executives, or debt or equity holders, at SVB or Signature. They’re all fired or zeroed out. 

CS execs are largely going to be fired as well, and CS debt and equity holders are faring only a little better than their counterparts with SVB and Signature. 

We don’t yet know what’ll happen to the rest of the mid-sized banks currently under distress in the US, but it doesn’t seem as though they’re likely to get government bail outs. If anything, maybe they’ll get expensive sources of liquidity like Berkshire Hathaway provided to GS and BofA back during the 2008 financial crisis. If so, that is a form of punishment for taking excessive risk.