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Although, things worked out in the end for depositors, likely in part because it was a high-profile, “safe bet” bank.
by paulgb 4y ago
Although, things worked out in the end for depositors, likely in part because it was a high-profile, “safe bet” bank.
- lazide 4y agoHonestly, this is generally the way the FDIC has done it. I don’t recall any uninsured depositors at Wamu getting screwed either in ‘08.
- RC_ITR 4y agoBecause they got bought. Uninsured Indymac depositors got $0.50/dollar and usually, an uninsured depositor at a small bank can expect $0.60-0.75/dollar.
- lazide 4y agoYes, and the FDIC brokers those sales rapidly and with vigor. If someone doesn’t want to buy a small regional, it’s because the FDIC didn’t care to make it happen. Which isn’t surprising if there is no systemic risk involved.