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Lyn Alden: Banking Crisis Explained, Is This Start of a Systemic Financial Bust? Plus, Bank Consolidations and Bitcoin

Coin Stories

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Is the Government's Intervention a Bailout?

The FDIC only has less than 1% of deposits backed up by insurance. SPB had to go sell those long duration bonds, they had to mark to market. So they were at a loss. They tried to raise equity and they couldn't. And then there was a big decision whether or not they want to back up all depositors because most of them were uninsured.

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