May. 30 at 9:01 AM
$SBNY the most important revelation regard PII comes from the FDIC footnote: "Generally, the estimated liability for the total amount of post-insolvency interest payable is recognized when at least 95% of the principal of proven creditor claims has been paid."
Why did the FDIC decide, after years of no PII, that Signature had reached the stage where a multi-billion-dollar "total amount of post-insolvency interest payable" could be estimated?
That is the real signal.
So the appearance of PII is simultaneously:
a negative (large senior claim),
and potentially a positive signal about recoveries.