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Eventually, the bank’s assets. It’s not like they were broke or pilfered. They just couldn’t operate anymore. So the FDIC’s responsibility is to do something w
by swatcoder 4y ago
Eventually, the bank’s assets. It’s not like they were broke or pilfered. They just couldn’t operate anymore.
So the FDIC’s responsibility is to do something with what remains. Selling it all to another bank was one option that may not be panning it out; failing that, they’ll fund depositors, creditors, and investors as individual blocks of assets are wound down.
Insured depositors are sure to get all of their insured funds and the FDIC would have provided their own funding for that if they needed to. Uninsured balances and uninsured depositors will have high priority for what remains, which should be substantial.
These advanced dividends may come from liquid capital at the bank or from some other source of funds the FDIC has access to, and will be based on what the FDIC is already confident they can recover from the assets.