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They aren’t insolvent and have assets to more than cover depositors. The FDIC take over is about stabilizing the bank, not destroying it. Why would you let a ba
by fnordpiglet 4y ago
They aren’t insolvent and have assets to more than cover depositors. The FDIC take over is about stabilizing the bank, not destroying it. Why would you let a bank fail if it’s unnecessary ? They have enormous amounts of business relationships along a huge number of dimensions that are fully functional and fine and meaningfully contribute to the lives of millions. Why tear that up? Spite?
- IG_Semmelweiss 4y agobecause the management has failed. management needs to go. Many, many employees need to go. I'm not sure what % that is, but that's for new ownership to determine
- fnordpiglet 4y agoI think all of this is a forgone conclusion. Public intervention isn’t a great career move.
- markonen 4y agoHave they, though, if marked to market? After the deposit outflows this week?
- fnordpiglet 4y agoYou don’t have to value it marked to market. You can value it as net present value of the hold to maturity value. That’s not a liquid price, but it’s the value if used as collateral against a credit line from the feds.