> It's not clear whether the assets are enough to make the depositors whole. It sounds like the FDIC is making up the difference. Which it normally would not.
Sure, which is why I’m not opposed to depositors taking some haircut. But that’s only more reason to wipe the shareholders to the last penny.
> The depositors were taking risk just as the shareholders were taking risk.
No, they were not, that’s the whole point. They took completely different kinds of risks. Irrespective to what degree the taxpayers are encumbered with extending the bail out loans, shareholders are the ones who are expected to foot any bill first and foremost.
Sure, which is why I’m not opposed to depositors taking some haircut. But that’s only more reason to wipe the shareholders to the last penny.
> The depositors were taking risk just as the shareholders were taking risk.
No, they were not, that’s the whole point. They took completely different kinds of risks. Irrespective to what degree the taxpayers are encumbered with extending the bail out loans, shareholders are the ones who are expected to foot any bill first and foremost.