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They are getting it from liquidating the assets of the Bank. There are three parties who are "owed" here. The depositors, holders of debt and investors. Deposit
by thereddaikon 4y ago
They are getting it from liquidating the assets of the Bank. There are three parties who are "owed" here. The depositors, holders of debt and investors. Depositors are being made whole. Anyone who holds secured debt will get what's left. Owners of unsecured debt and investors are left out. Which is fine by me.
- johnbellone 4y agoThose assets may take years to liquidate. Nobody wants to be in the business of holding the bag on an interest free loan for that length of time. Especially when that totals to >$150B.
- doodlesdev 4y ago> Owners of unsecured debt and investors are left out. Which is fine by me. Also fine by me. The distinction I attempted to make in my comment was that there are actually something like four parties in this case: Holders of debt, investors, insured deposits and uninsured deposits. I find it absurd the FDIC is going to realize a loss to cover uninsured deposits, because that's simply not what they should do if they followed their own standard. Remember, even though it's state-owned the FDIC is a company, Americans should be worried if the FDIC takes actions that could ultimately put in risk money that _is_ actually insured. If they run dry, they will have to tap into the government's pockets and that's when shit truly hits the fan.