Comment on Ex-bank CEO gets 24 years after falling for crypto scam, causing bank collapse

db2@lemmy.world ⁨2⁩ ⁨months⁩ ago

• atrielienz@lemmy.world ⁨2⁩ ⁨months⁩ ago

  Given that he was embezzling bank funds to funnel into a fake crypt scam, and the people who those funds belonged to were not in fact the bank, and the article suggests those people were not made whole, I’m just gonna say that it’s not about the bank, it’s about the people who lost shit like their life savings to this a-hole.

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  • idunnololz@lemmy.world ⁨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.

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    • atrielienz@lemmy.world ⁨2⁩ ⁨months⁩ ago

      The banks customers were not the only people who he stole from.

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      • idunnololz@lemmy.world ⁨2⁩ ⁨months⁩ ago

        Oh yeah. That’s fair.

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    • VirtualOdour@sh.itjust.works ⁨2⁩ ⁨months⁩ ago

      That’s still 47 million of everyone’s money that could have been better spent

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      • xthexder@l.sw0.com ⁨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.

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    • Blaat1234@lemmy.world ⁨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 - not when you get old and medical bills are crazy high in Murica.

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      • idunnololz@lemmy.world ⁨2⁩ ⁨months⁩ ago

        Ok so I decided to read into this a little more. On FDICs website it says all customer funds should be available backing up my assumption that no customer of the bank lost any money: www.fdic.gov/resources/…/heartlandtristate.html

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      • idunnololz@lemmy.world ⁨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.

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