this post was submitted on 22 Dec 2024
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It's all made from our data, anyway, so it should be ours to use as we want

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[–] fmstrat@lemmy.nowsci.com 73 points 15 hours ago (5 children)

So banks will be public domain when they're bailed out with taxpayer funds, too, right?

[–] ArchRecord@lemm.ee 52 points 14 hours ago (1 children)

They should be, but currently it depends on the type of bailout, I suppose.

For instance, if a bank completely fails and goes under, the FDIC usually is named Receiver of the bank's assets, and now effectively owns the bank.

[–] booly@sh.itjust.works 7 points 13 hours ago (1 children)

At the same time, if a bank goes under, that means they owe more than they own, so "ownership" of that entity is basically worthless. In those cases, a bailout of the customers does nothing for the owners, because the owners still get wiped out.

The GM bailout in 2009 also involved wiping out all the shareholders, the government taking ownership of the new company, and the government spinning off the newly issued stock.

AIG required the company basically issue new stock to dilute owners down to 20% of the company, while the government owned the other 80%, and the government made a big profit when they exited that transaction and sold the stock off to the public.

So it's not super unusual. Government can take ownership of companies as a condition of a bailout. What we generally don't necessarily want is the government owning a company long term, because there's some conflict of interest between its role as regulator and its interest as a shareholder.

[–] Badeendje@lemmy.world 4 points 13 hours ago* (last edited 13 hours ago)

With banks this is also true if they do not have enough liquid assets to meet the legal requirements. So the bank might not be able to count all bank accounts as assets but the FDIC is. Also they can then restructure the bank and force creditors to take a haircut.

This is why investment banks should be separate from banks that have consumer accounts that are insured by the government.
Then you can just let the investment bank fail. This was the whole premise of glass steagall that was repealed under clinton..

[–] xthexder@l.sw0.com 10 points 14 hours ago* (last edited 14 hours ago) (1 children)

Public domain wouldn't be the right term for banks being publicly owned. At least for the normal usage of Public Domain in copyright. You can copy text and data, you can't copy a company with unique customers and physical property.

[–] fmstrat@lemmy.nowsci.com 3 points 12 hours ago

Oh good point. I'm not actually sure what the phrase would be.. Publicly owned?

[–] leisesprecher@feddit.org 2 points 13 hours ago

I mean, that sometimes did happen.

Germany propped up the Commerzbank after 2007 by essentially buying a large part of it, and managed to sell several tranches with a healthy profit.

Same is true for Lufthansa during COVID.

[–] interdimensionalmeme@lemmy.ml 1 points 11 hours ago

Banks are redundant, so is the stock market. These institutions do not need to, and should not be private. They are level playing fields in the economy, not participants trying to tilt the board for taking over the game.

[–] LovableSidekick@lemmy.world -1 points 13 hours ago* (last edited 13 hours ago)

No, "the banks" wouldn't be what the AI would be trained on, it would be the private info of individuals the banks do business with.