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Thanks, yup- to be more precise, a state of insolvency- liabilities > assets at close of business- may result in one or more outcomes, one of which is essential

Thanks, yup- to be more precise, a state of insolvency- liabilities > assets at close of business- may result in one or more outcomes, one of which is essentially bankruptcy + bail in, but another might be, eg being absorbed/acquired?

cm2187 6y ago
Correct. Though just to be precise, a bailin would happen well ahead of a bankruptcy, the regulator wouldn’t wait for the situation to be that bad to call the bank non viable (except in a jump to default scenario). Absorbed/acquired: that’s a bailout. Always an option but I think everyone agrees no one wants to see that happen again unless it is a willing private buyer.