If the government takes over a failed bank with liabilities (mostly deposits) of $2 billion, pays off

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If the government takes over a failed bank with liabilities (mostly deposits) of $2 billion, pays off the depositors, and sells the assets for $1.5 billion, where does the missing $500 million come from? Why?

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Macroeconomics Principles And Policy

ISBN: 9780324586213

11th Edition

Authors: William J. Baumol, Alan S. Blinder

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Question Posted: Sep 01, 2012 02:47 AM

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If the government takes over a failed bank with liabilities (mostly deposits) of $2 billion, pays off

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The Federal Deposit Insurance Corporation insures deposits up to 100000 If the government can se...View the full answer

Macroeconomics Principles And Policy

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