Table 1—Illustration of Bank A Payout Liquidation—Cost Estimate
[Dollars in billions]
Liquidation market value Payout liquidation liability claim and amount recovered Category Value Category Claim Recovery/(loss) Loans $175 Secured Claims $25 $25/($0). Securities $70 Deposits Insured $180 $162/($18). Cash Other $25 $25 FDIC incurs the loss for the insured deposits so that all insured deposits are fully repaid. Total $295 Deposits Uninsured $120 $108/($12). Unsecured Claims/Debt $25 $0/($25). Equity Holders No recovery. Loss to Deposit Insurance Fund (to make whole insured depositors) = $18 billion.45 Losses to uninsured depositors = $12 billion.