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Patriot Bank has $60 million in cash and $100 million in loan assets. Its insured deposits are valued at $75 million and its uninsured deposits
Patriot Bank has $60 million in cash and $100 million in loan assets. Its insured deposits are valued at $75 million and its uninsured deposits are valued at $50 million. Equity is the difference between the assets and liabilities, $35 million. If Patriot Bank suffers $50 million in loan defaults, what is the cost of failure resolution to (a) insured depositors, (b) uninsured depositors, (c) shareholders, (d) the FDIC
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