Chapter
The Market Failure of Banking
1:08:16 - 1:16:41 (08:25)
The banks need to protect 100% of deposits and cannot enter into extracurricular activities without raising money from investors. The depositor and the consumer have different expectations and banking has a fundamental market failure, which should be considered by the federal government while backstopping the banks.
Clips
The depositor or the consumer and the bank think they're getting two completely different things.
1:08:16 - 1:10:22 (02:06)
Summary
The depositor or the consumer and the bank think they're getting two completely different things. There's a fundamental market failure with banking that needs to be addressed by the federal government.
ChapterThe Market Failure of Banking
EpisodeE121: Macro update, Fed hike, CRE debt bubble, Balaji's Bitcoin bet, TikTok's endgame & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
Banks should prioritize protecting 100% of deposits and raising money from investors for extracurricular activities, much like other risk-taking organizations.
1:10:22 - 1:13:56 (03:33)
Summary
Banks should prioritize protecting 100% of deposits and raising money from investors for extracurricular activities, much like other risk-taking organizations. Banks have improved their risk management abilities since the 2008 financial crisis in sectors such as CLOs, asset-backed securities, solar, car loans, credit cards, mortgages, and private equity-backed deals.
ChapterThe Market Failure of Banking
EpisodeE121: Macro update, Fed hike, CRE debt bubble, Balaji's Bitcoin bet, TikTok's endgame & more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
The violation of LPA in investments can lead to severe consequences for investors, especially when investing in illiquid assets.
1:13:56 - 1:16:41 (02:45)
Summary
The violation of LPA in investments can lead to severe consequences for investors, especially when investing in illiquid assets. The decision to increase the eligibility bar from 50 billion of assets to 200 billion could also have negative consequences for equity value in banks.