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The Deals of a Lifetime
For some banks, the best deal in years comes in a call from the Federal Deposit Insurance Corp. This spring, at least two banks got that call, following the failures of Silicon Valley Bank and Signature Bank. Those institutions had experienced rapid liquidity failures and were now bridge banks, looking for a resolution. The assets had value, but it wasn’t clear how much. It also wasn’t clear if the deposit runs had stopped. As the deposit insurer, the FDIC was managing the banks, but that’s not its job; disposing the assets to pay out the uninsured deposits was surely going…
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