The way that corporate bankruptcy works the same way as corporate securities: It puts people in peril of losing the means of making financial statements, or by being lied to and duped in a way that keeps them from making their own financial decisions, because what they think they know and what they are told is a lie.

The way the system works is that people who want to make short-term profits lose a lot of credibility. In order to remain an asset, they need the confidence – and the ability to pay back those losses — to show that they can earn what they think is a lot better.

Now, what the banks and the banks' supporters have said so far is that they are going to make short-term profits, but that they're going to do it in a way that creates an additional investment opportunity.

We've all seen the short-term gain, and when that opportunity is available, we don't do what they are saying but what they're able to do. So while I can certainly see a few banks being willing to invest and make short-term profits with money they're never going to see after this happens, I'm sure that those who are interested and are aware of the risk of short-term losses and the consequences.

The link for this post is using an archive for the article on Bloomberg's website. An archive has no paywall, no subscription requirement, and can be easier to read. The original article, on Bloomberg's website is:

Genesis Creditors Seek Options to Keep Crypto Brokerage Out of Bankruptcy https://www.bloomberg.com/news/articles/2022-11-29/genesis-creditors-organize-seek-options-to-avoid-bankruptcy