As of June 30th, less than three months ago, if you believe this bank's balance sheet the institution had an excess capital position (that is, assets .vs. liabilities) of 5.96%. That is, it had 6% more assets than liabilities and thus was (almost) within regulatory capital minimums.
Today, we are told that the FDIC is going to lose $46.9 million on this transaction.
In order for the reported balance sheet to be true the bank had to lose $16.7 million (its entire surplus) plus the $46.9 million the FDIC is now going to lose in less than three months.
That is, it had to lose $63.6 million in asset valuation in three months or about 22% of it's asset value.Yes, well, I'm sure there's a 'splanation coming from Lucy.
And this little Floriduh bank is certainly not the only one with magical disappearing money.
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