[TrumpCard]

Reports say $209 billion in assets to cover $175 billion in deposits. Some assets will have to be sold at a significant discount but a 16% cushion is pretty good. I suspect depositors will be made whole. Equity investors should not recover a dime, though it’s tough to predict what’ll actually happen in this sort of situation. Bond holders will likely get something, but still suffer big losses. Most of the bank’s management should be out of jobs. Allowing a top-20 bank to fail in a decent economy required very irresponsible decision making.

[TrumpCard]

Reports say $209 billion in assets to cover $175 billion in deposits. Some assets will have to be sold at a significant discount but a 16% cushion is pretty good. I suspect depositors will be made whole. Equity investors should not recover a dime, though it’s tough to predict what’ll actually happen in this sort of situation. Bond holders will likely get something, but still suffer big losses. Most of the bank’s management should be out of jobs. Allowing a top-20 bank to fail in a decent economy required very irresponsible decision making.