What? And how exactly would FRC have just gone on? They were insolvent. The fed and regulators have to provide their current receivership terms (depositors wil

What? And how exactly would FRC have just gone on? They were insolvent. The fed and regulators have to provide their current receivership terms (depositors will be made whole) to prevent banks runs and a liquidity collapse. Without these terms FRB would have collapsed long ago, as would have many other regional banks in the panic that would ensue as everybody takes their money to a TBTF bank. The fed can only let you use those terms when you’ve failed, because otherwise they’d be massive money printers and accelerate inflation greatly (for the part that’s not funded by existing insurance terms, or bank fees, which btw are gonna have to go up each time this happens). And the Fed can’t let banks like FRC continue to operate after receivership because it’s essentially bailing out shareholders and execs with public money.