4 ms·

Well, ok, then what do you do with all the money sitting in deposits in the bank? Just mail a check back to people? This is why the executives should be crimin

• dec0dedab0de 13y ago
  In that case, care of the various customer accounts should be sold off to another bank.
• dragonwriter 13y ago
  > Well, ok, then what do you do with all the money sitting in deposits in the bank? There's a couple ways you could handle a "corporate death sentence" applied to a bank: 1. You could treat it as if the bank had failed completely -- all assets are forfeited, but customers receive refunds on insured (e.g., covered by FDIC) accounts only up to the amount insured. This would create some risk for large depositors, which could be considered bad, or could be considered good as it would encourage large depositors to take an active interest in how banks are run which would create pressure on behavior which would reduce the likelihood of needing to impose sanctions. 2. You could treat it as a facilitated sale of the corporation itself -- either in one unit or split into pieces with different buyers -- with any proceeds going to government rather than the shareholders.