www.bloomberg.com
In Germany, small investors who lost everything in near-insolvent companies are complaining they were prevented from investing more money into the failing businesses. These investors, often emotionally or financially invested, feel the existing regulations, particularly capital requirements, are paternalistic and rob them of their autonomy. They argue for the right to make their own financial decisions, even if they are high-risk, rather than being protected by the state. Currently, strict laws limit how much an investor can pour into a failing firm, designed to protect consumers. The investors claim this protection is unnecessary and overly restrictive, hindering their ability to potentially recoup losses.
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