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weixiyen | 3 years ago

yep, it's a solvency issue. The minute they tried to offload the bonds at a price lower than they paid for them (which seemed like the right thing to do to fix the liquidity issue), they were effectively in a hole and even if they waited 10 years later, would not have been able to cover the deposits.

They NEEDED to raise capital.

Their liabilities > assets.

They were 100% insolvent.

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