In this article, I am going to give a basic introduction to insolvency (bankruptcy), as well as a discussion of the principles of how losses are apportioned to the various classes of creditors of American banks. I will only attempt to look at American banks since bankruptcy procedures are specific to each legal jurisdiction. Although I was not a credit analyst, I worked with them and had some training on the topic. The article “U.S. Corporate and Bank Insolvency Regimes: An Economic Comparison and Evaluation” by Robert R. Bliss and George G. Kaufman (URL:
Great write up as always, personally i would have liked to see the uninsured deposits get screwed over but you make a great point about the bottom feeders. In regards to your closing remarks can you recommend any literature regarding on how to start the process of reading bank balance sheets?
Great write up as always, personally i would have liked to see the uninsured deposits get screwed over but you make a great point about the bottom feeders. In regards to your closing remarks can you recommend any literature regarding on how to start the process of reading bank balance sheets?