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I don't get this comment at all. The post you're replying to literally says the bank has more assets than 250k per client. I read somewhere the insured amount i
by locallost 4y ago
I don't get this comment at all. The post you're replying to literally says the bank has more assets than 250k per client. I read somewhere the insured amount is around $8B whereas the bank's assets are at least 20x that. Where should that money go if every client gets capped at 250k?
- ericd 4y ago>then distribute the rest pro rata based upon closing balance from when the fed's took over. The second part of that sentence addresses your question.
- koolba 4y agoThey have more than $250K per client but not the full value. Each account should be allocated MIN(balance, 250K). Then the remaining should be allocated pro rata. So if one is still owed $1000 (ie the balance was $251K before the collapse), then that account’s share of the remainder is: $1000 / (sum of all remaining balances owed) The haircut per account is only on amounts beyond $250K.
- locallost 4y agoBut that's exactly what the post you replied to said? Anyway, I am against a bailout here, but haven't seen one announced.
- cscurmudgeon 4y agoThe salty commenters think it should go to them or the govt but won’t say it out loud lol.