It spreads the burden sharing in an unprecedented manner by including a de facto haircut on all bank deposits (de jure, depositors receive an equity claim).
In 1801, following complaints from the public and members of Congress regarding the lack of small change in circulation, Boudinot began requesting that silver depositors receive smaller denominations rather than the routinely requested silver dollars, in an effort to supply the nation with more small change.
Depositors will receive the same benefits granted to depositors at Provident, which is, in effect, owned by the depositors rather than shareholders.
In the case of Superior Bank of Hinsdale, Ill., which failed last year, depositors have so far received 47 percent of their uninsured funds.
In exchange, depositors will receive shares in a recapitalized bank.
Depositors may receive almost no return on their money but that isn't a great help to the banks when demand for credit is muted and a flat yield curve (the difference between short-term and long-term interest rates) hits profits.In this environment even signature achievements came with caveats.
(Exactly 125 years ago today, the Greenwich received $18,467.00 from1311 depositors and paid out $16,599.33 to 239 depositors).
This legal principle has been upheld by all courts and is based upon the sound rationale adopted by Congress that there should be only one representative for a failed institution, the F.D.I.C. Uninsured depositors, to date, have received the insured portion of their deposits and nearly 70 percent of their uninsured monies.
Even as European and Cypriot officials put controls in place to keep depositors from sending their money abroad, one fact has become clear: when the bank does resume trading on the local stock exchange, it will be the bank's largest depositors who will receive commanding stakes in the revamped Bank of Cyprus.
Now depositors have got used to shopping around.
Depositors have come through the financial crisis largely unscathed.
