• idunnololz@lemmy.world
    link
    fedilink
    English
    arrow-up
    11
    arrow-down
    2
    ·
    2 months ago

    Because the bank was insured by the Federal Deposit Insurance Corporation (FDIC), the FDIC “absorbed the $47.1 million loss” after “Hanes’ fraudulent actions caused HTSB to fail and the bank investors to lose $9 million,” the US Attorney’s Office said.

    It sounds like no customer with the bank lost anything. Only investors who I assume are well off anyways.

    • atrielienz@lemmy.world
      link
      fedilink
      English
      arrow-up
      6
      ·
      edit-2
      2 months ago

      The banks customers were not the only people who he stole from. However, I concede the point.

      • idunnololz@lemmy.world
        link
        fedilink
        English
        arrow-up
        3
        ·
        edit-2
        2 months ago

        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.

      • xthexder@l.sw0.com
        link
        fedilink
        English
        arrow-up
        3
        ·
        2 months ago

        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.

    • Blaat1234@lemmy.world
      link
      fedilink
      English
      arrow-up
      2
      ·
      edit-2
      2 months ago

      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.

        • Blaat1234@lemmy.world
          link
          fedilink
          English
          arrow-up
          3
          ·
          2 months ago

          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/

          Victims may never fully recover losses, DOJ says

          In the community, people are still struggling to recover, Mitchell told NBC News, noting that some people lost up to 80 percent of their retirement savings. For at least one woman, retirement is impossible now, Mitchell said, and for another local woman, it has become difficult to pay for her 93-year-old mother’s nursing home.

          US Attorney Kate E. Brubacher said that it’s hard to say when or if victims will be made whole again.

          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.

      • idunnololz@lemmy.world
        link
        fedilink
        English
        arrow-up
        1
        ·
        2 months ago

        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.