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What happens if a huge bank like JP Morgan goes bankrupt?

posted 3 years ago by bojackjohnson 3 years ago by bojackjohnson +114 / -0

For example, my mortgage is through JP Morgan Chase. Do credit cards and mortgages and such just get wiped out? Or do they demand people pay their balances all at once? Or does another bank buy them out and the debts are transferred? How does all of that work?

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– kosher 1 point 3 years ago +1 / -0

The entire financial system will implode, I don't think there is a financial institution(s) big enough to take on the debts. Just look at how many trillions are dedicated to interest rate swaps.

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