first this
https://x.com/Mayhem4Markets/status/1765429167972126764?s=20
then
NYCB received $1B new capital injection from a Steven Mnuchin (the vulture capitalist) led fund, providing a lifeline support that resulted in the stock almost doubling from the lows of $1.90 to close at $3.46, up +7.45% on the day.
The reason why we see these FDIC-arranged "deals" is because the FDIC would rather wipe out all shareholders than to actually shut a bank down. They don't have the capital to bailout depositors, which is what they warned about last May: https://fdic.gov/analysis/options-deposit-insurance-reforms/report/options-deposit-insurance-reform-full.pdf…
"Trends in uninsured deposits have increased the exposure of the banking system to bank runs. At its peak in 2021, the proportion of uninsured deposits in the banking system was 46.6 percent, higher than at any time since 1949"
https://x.com/SuburbanDrone/status/1765463745667399928?s=20
