🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

‘Politics Surrounding Banking is Toxic,’ Says BitMEX Co-Founder

Published 05/02/2023, 03:46 AM
Updated 05/02/2023, 04:00 AM
© Reuters ‘Politics Surrounding Banking is Toxic,’ Says BitMEX Co-Founder
JPM
-
FRCB
-

  • Arthur Hayes commented on his perspectives on the US authority’s closure of the First Republic Bank (NYSE:FRC).
  • The BitMEX co-founder posited that the FDIC’s move has been a political paralysis.
  • Hayes added that the politics regarding banking and finance is toxic.

Arthur Hayes, the American entrepreneur, and co-founder of the crypto exchange BitMEX invited the Twitter community’s attention to his perspectives on the US government’s recent seizure of California’s First Republic Bank. He commented that the Federal Deposit Insurance Corporation’s (FDIC) move has been a “political paralysis” to capitalize the “non-TBTF” bank.

Notably, on Monday, it has been officially declared that the regulators seized the First Republic Bank and handed over its control to the leading financial services company JPMorgan Chase (NYSE:JPM) & Co; the bank has been struggling for the past few weeks amid the financial turmoil that startled the entire banking sector.

In the early hours of May 2, as a response to the bank’s closure, Hayes asserted that the government has been effectively nationalizing the eight TBTF (Too Big To Fail) banks, calling it as the “politics of the day.”

In addition, Hayes pointed out that those banks are supported by the government as their deposits hold the authority’s guarantee; the banks wouldn’t be pushed to complete failure regardless of the government’s decision.

Significantly, he propounded that the depositors’ holdings are safe unless they are in a non-TBTF bank, stating:

When called upon the 8 TBTF banks must absorb their shitty cousins who couldn’t handle the rough and tumble free market. The prodigal childrens’ equity holders will get a 0 first, but the depositors will find a new home in a safe TBTF bank.

Interestingly, the BitMEX co-founder reiterated that the crypto community is still unclear about the actual losers of the banking debacle as the authority has been deliberately introducing “contorted solutions” to create confusion. While commenting on the confusion prevailing in the community, he added that the “politics surrounding banking, credit, and debt are toxic”.

The post ‘Politics Surrounding Banking is Toxic,’ Says BitMEX Co-Founder appeared first on Coin Edition.

See original on CoinEdition

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.