2 ms·
His thesis is that they'll bail out the depositors to avoid other runs.
by bagels 4y ago
His thesis is that they'll bail out the depositors to avoid other runs.
- eru 4y agoYes, that's my reading as well. Which sounds rather different to me than 'Their balance sheet is strong and they are fully solvent.' Their balance sheet is weak, but they kept going because some accounting tricks allowed them to defer mark-to-market on their losses.