There’s a tradeoff between how fast uninsured depositors get repaid and how much they get repaid. I.e., more time to execute asset sales from SVB’s portfolio will allow the FDIC and the receiver bank to realize better prices on these assets. The 30-50% range mentioned in the above article seems reasonable for an initial distribution, IMO.
“The efficient-market hypothesis may be the foremost piece of B.S. ever promulgated in any area of human knowledge!”
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