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Technically true, but when a distressed bank gets sold where does the money go that's paid by acquiring party? Stock holders are last in line. Employees who are
by gizmo 4y ago
Technically true, but when a distressed bank gets sold where does the money go that's paid by acquiring party? Stock holders are last in line. Employees who are due wages are first in line. We can guesstimate how large the hole is and how much SVB is worth. The money that would otherwise go to stockholders during an acquisition will now be used to fix the balance sheet.
- bombcar 4y agoOften the acquiring pays a negative price ( they get the bank AND an injection of cash from FDIC).