On: Americans see their savings vanish in Synapse fint...

[dehrmann]

I don't want to go out of my way to defend their incompetence, but you have to prove what happened. It's not fair to send a CEO to prison because a different insider independently embezzled funds and they lost the records.

[Super_Jambo → dehrmann]

Seems like a rather large moral hazard if we don't?

At some point the courts should be able to say "ok fine you were the directors responsible for the company you're going to prison n years, sorry."

Bet we'd see a lot more documentation suddenly appear.

[suzzer99 → Super_Jambo]

I'd bet 95% of fintech startups are just walking moral hazards to begin with.

[JumpCrisscross → Super_Jambo]

> Seems like a rather large moral hazard if we don't

Based on what? The catastrophic failure rate is low. And if you’re sensitive to that risk, don’t bank with a firm that’s selling you on sticking it to the man or whatever.

[sofixa → dehrmann]

Command responsibility applies here. CEOs get multiple times their average employee's pay because of their responsibility, which should include responsibility to know when stuff goes wrong.