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I think sometimes historically FDIC has misjudged the banks asset values and payed out too big an advance for uninsured funds (and then hence had to absorbe the
by havkom 4y ago
I think sometimes historically FDIC has misjudged the banks asset values and payed out too big an advance for uninsured funds (and then hence had to absorbe the loss themselves upon liquidation)
- mixdup 4y agoThey typically (at least where there's been documentation of the deal) where they limit their losses--one instance they sold the bank and guaranteed 20% of the assets. No way for them to misjudge that, they know the maximum they're going to pay out there even if they become 100% worthless