Toddsterpatriot
Diamond Member
Somebody will buy the bank. The federal government is pretty good at strong arming other banks into eating the loss for them under threat of investigations into some practice or the other.
In this case, however, they had to take a couple billion in losses by selling off low interest bonds to try to increase cash on hand which signaled they were out of cash which caused a run on the bank, particularly by people who had deposits over the FDIC insured limits.
This liquidity problem is going to be more common over the next few years with the Fed addicted to interest rate hikes.
The federal government is pretty good at strong arming other banks into eating the loss for them under threat of investigations into some practice or the other.
The buyer isn't going to take any losses.