Sep. 2 at 4:10 PM
$SBNY . @Swiss_Scroogy_McDuck. FDIC took a loan from the fed to pay for deposit claims and not from the DIF. As we saw, the DIF increased from
$123B to
$130B instead of the fund coming down if it paid for the deposits. Thatâs why FDIC was being criticized for doing so bec of the high penalty it came with the loan and aside from the fact that they didnât follow the law obligating them to use DIF to pay for uninsured deposits. FDIC is using all the proceeds from the asset sales to recover the money. Thatâs why the balance sheet is still negative to date.
Another thing is that preferred equity is
$0.7 billion(28m preferred holders x
$25/share which is the liquidation preference rate). Your chart states estimated preferred equity of
$0.5 billion.
The
$4-
$5B for distribution to common shareholders is in line with some other predictions and might be a realistic amount. It is better than nothing. Although, we are wishing and think itâs more than that. Just ask Mr Klett, Grok and Onlytitz! đ
