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

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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    Blaat1234@lemmy.world ⁨2⁩ ⁨months⁩ ago
    That contradicts statements on arstechnica.com/…/ex-bank-ceo-gets-24-years-after…
    
    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.
    
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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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