[HN Gopher] FDIC says banks can engage in crypto activities with...
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FDIC says banks can engage in crypto activities without prior
approval
Author : speckx
Score : 39 points
Date : 2025-03-28 20:48 UTC (2 hours ago)
(HTM) web link (www.reuters.com)
(TXT) w3m dump (www.reuters.com)
| miohtama wrote:
| For the context, here is the Financial Services Committee hearing
| on the topic, and what led to these events
|
| https://financialservices.house.gov/news/documentsingle.aspx...
| viraptor wrote:
| > so long as they manage their risks appropriately.
|
| How is this part enforced? Self review?
| tetromino_ wrote:
| Empirically, banks which get involved with crypto tend to blow
| up: https://www.bitsaboutmoney.com/archive/debanking-and-
| debunki...
|
| How should one keep track of whether one's banks have non-
| negligible crypto exposure, so that one may move one's money to
| safer institutions well in advance of the inevitable disaster?
| Analemma_ wrote:
| You can't, that kind of transparency would be job-killing
| strangulation of business, and probably also DEI or something.
| So you have to just guess, and accept that you're fucked if you
| guess wrong. Enjoy!
| Lerc wrote:
| Empirically, a lot of early ventures into any area tend to blow
| up.
|
| The first people to try are, almost by definition, the risk
| takers.
|
| That is not to say they all blow up, or even that the ones that
| blow up do so because of this particular venture. Just high
| risk taking is correlated with both blowing up and trying the
| new thing first.
|
| They may blow up from some completely unrelated risky venture.
| roughly wrote:
| Empirically, a lot of people who go to casinos also go bust.
| thegreatpeter wrote:
| Every bank will get involved in crypto if they haven't already
| Retric wrote:
| Most banks specialize quite a bit, they aren't going to jump
| in unless crypto gets 100x as large as it is now and the
| growth just isn't there.
| dist-epoch wrote:
| Empirically, banks which get involved in any kind of financial
| activity tend to blow up: lending money, mortgages, forex
| trading, interest rate trading, ...
| kylehotchkiss wrote:
| My spider sense tells me Wells Fargo will be one of the first
| to go all in, they've generally been an org that makes solid,
| future-focused decisions right?
| tehjoker wrote:
| It's crazy how America is just devolving into an interlocking set
| of ever more obvious financial scams.
| FloorEgg wrote:
| You say that as if it hasn't been going on for at least
| decades. I'd wager that there's some perspective that could
| argue it's a default mode of society and financial systems,
| that occasionally is hard to notice during rapid increases in
| prosperity.
| tehjoker wrote:
| I mean, I guess it did peak in 2008, and also in the S&L
| scandal in the 80s, but still bitcoin serves no conceivable
| practical purpose. At least CDOs in principle were supposed
| to get people homes even if they were mostly a scam.
| chews wrote:
| No, a CDO by definition is a rehypothecation of an asset
| that really didn't need it, it was just a means to let
| others bet on what seemingly was a sure thing until it was
| not. Not only was the underlying security, it's derivative,
| and an insurance product to boot, that's why insurance
| companies also got bailouts.
|
| This massive failure is what created the need for bitcoin,
| a means in which to trap energy (you need to spend money to
| make bitcoin) and store/move it digitally, then you get the
| benefit of a visible record of transfers and stores.
|
| As a silvergate, signature, and SVB customer they didn't
| hedge their t-bill duration risk properly, experienced a
| co-ordinated bank run and had to sell their assets off at a
| discount, making them insolvent.
| malfist wrote:
| It's called the American dream because you have to be asleep to
| believe it
| guelo wrote:
| Well, crypto vc's purchase of a seat at the Trump oligarchy
| circle is paying off.
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