3 ms·
The key point isn't if a claim is accepted or denied (the people getting the letters almost certainly have standing to be accepted), it's if there is money to p
by goatsi 4y ago
The key point isn't if a claim is accepted or denied (the people getting the letters almost certainly have standing to be accepted), it's if there is money to pay the claims, and how soon they can get it. Having an unsecured claim isn't "Show up on Monday and the FDIC will hand you a bag of cash", it's "The bankruptcy court and trustees expect the final settlement to be in 3-5 years, with a haircut of 10-30%".
- whitemary 4y agoSource?
- kgwgk 4y agohttps://www.fdic.gov/consumers/banking/facts/priority.html https://www.fdic.gov/consumers/banking/facts/priority.html "By law, after insured depositors are paid, uninsured depositors are paid next, followed by general creditors and then stockholders. In most cases, general creditors and stockholders realize little or no recovery. Payments of uninsured funds only, called dividends, depend on the net recovered proceeds from the liquidation of the bank's assets and the payment of bank liabilities according to federal statute. While fully insured deposits are paid promptly after the failure of the bank, the disbursements of uninsured funds may take place over several years based on the timing in the liquidation of the failed bank assets. "