It's a little more complicated than this. The share and bondholders are pretty much screwed here although they'll probably be compensated at least somewhat by the FDIC insurance fund )which is thankfully not funded by tax payer dollars). But both groups are going to take a serious financial beating.
The depositors will be covered, however.
I can't criticize this too heavily. If the depositors were not covered here, we'd be having the biggest bank run of our lives tomorrow morning.
It's a little more complicated than this. The share and bondholders are pretty much screwed here although they'll probably be compensated at least somewhat by the FDIC insurance fund )which is thankfully not funded by tax payer dollars). But both groups are going to take a serious financial beating.
The depositors will be covered, however.
I can't criticize this too heavily. If the depositors were not covered here, we'd be having the biggest bank run of our lives tomorrow morning.