3 ms·
Yeah but look at the FDIC historical data on "dividends" (FDIC's term for uninsured depositor paybacks). Lots of cases have >90% payback rates... they just take
by xenadu02 4y ago
Yeah but look at the FDIC historical data on "dividends" (FDIC's term for uninsured depositor paybacks). Lots of cases have >90% payback rates... they just take years to do so.
This whole operation is just a short term backstop to prevent a bank panic. By promising 100% with no delay everyone can calm down.
And the cost of 100% immediately vs 96% within 5 years isn't that high.