I haven't seen any suggestion of fraud up to this point. Just reserves held in low yielding marketable securities in the new era of a 5% yield resulting in liquidating at a loss. Add in a good old fashioned run on the bank and presto! Not sure ANY bank could stand a run on deposits if everyone wanted to exit at the same time.
School me if I'm wrong but the depositors shouldn't make out too bad, even if over 250K. Now the shareholders are a completely different story.
I think you are correct, bc3. No fraud, just extremely poor bond portfolio risk management. Something they should be good at after 30 years (or more). Then there is the bad optics of the bonuses that went out Thursday.
