Conversation

For all these companies looking for bailouts, what prevents them from raising capital the old fashioned way? Issue more stock and sell it? Or, maybe sell all the stock you bought back with the rainy day fund you should have been holding on to?

103

592

Jesse Powell

@jespow

As a small fintech, we have capital requirements imposed on us. We have to leave millions of dollars with regulators just in case we blow up and they have to take on the cost of winding down our business. So, why is "2B2F critical infrastructure" allowed to run with 0 reserves?

5:48 AM · Mar 19, 2020Twitter Web App

Replying to

I get that if the government forces you to stop doing business while you continue to incur costs, some support can be expected if the government cares to keep the business alive. But that's not everybody. Lots are dying because of reduced demand and margins/reserves being too low

Replying to

Market entry barriers. But glad to know we are safe on Kraken.

Replying to

and

Double standards

Replying to

You should split the US exchange from the rest of the world

Replying to

Coz you have a bank and you have people money under custody ? Just saying 🤷‍♂️

Replying to

Businesses may have done much wrong in the way of cash management but regardless, most aren't going to be prepared for a systemic forced shutdown like this! In addition, the bargain the government can strike is - keep people employed to prevent snowballing into a depression