[BostonCard]

“Should be” is not a moral judgment on the righteousness of equity-holders, it is just a statement of fact of what equity means.  When Washington Mutual went under, its equity holder got nothing.

https://www.fdic.gov/resources/resolutio...ement.html

Shareholders get to share in a company’s growth and profits when a company goes well, but also are exposed to losing their money if a company goes bankrupt.

My sympathies to your sister-in-law and all the other employees who are affected.  Obviously it is a double whammy to potentially lose your job and some (maybe significant) savings.  But, unless SVC’s assets are much larger than we think, what remains should be given, I’m order, to secured depositors, unsecured depositors, bond holders, and, lastly, equity holders.  So, sadly, yes, the equity holders should be wiped out.

BC

[BostonCard]

“Should be” is not a moral judgment on the righteousness of equity-holders, it is just a statement of fact of what equity means.  When Washington Mutual went under, its equity holder got nothing.

https://www.fdic.gov/resources/resolutio...ement.html

Shareholders get to share in a company’s growth and profits when a company goes well, but also are exposed to losing their money if a company goes bankrupt.

My sympathies to your sister-in-law and all the other employees who are affected.  Obviously it is a double whammy to potentially lose your job and some (maybe significant) savings.  But, unless SVC’s assets are much larger than we think, what remains should be given, I’m order, to secured depositors, unsecured depositors, bond holders, and, lastly, equity holders.  So, sadly, yes, the equity holders should be wiped out.

BC