3 ms·

There's a $40 billion hole in their balance sheet...

• gumby 4y ago
  As fairity pointed out in a comment to this thread, "The FDIC report shows $209b in assets and $175b in deposits." Unfortunately much of their balance sheet is illiquid (consider loans they've made to venture-backed businesses, and of course a poor choice they made in government debt maturity). Thus a liquidity crisis; technically also insolvency, but not gross mismanagement and excessive leverage by any means. Unwinding it will be quite routine (see my reply to kmod).