00:02
So, the fdic that is the federal deposit insurance corporation has two options in resolving a failed bank.
00:14
So, the fdic that is federal deposit deposit insurance corporation has two options in resolving a failed bank.
01:03
So, first is purchase and assumption.
01:07
First is purchase and assumption.
01:21
That is b and a.
01:25
In this option, the fdic finds another healthy bank willing to purchase the failed bank assets and assume its liability.
01:40
So, in this find another healthy bank willing to purchase the failed bank's asset, the failed bank assets and assume its liability.
02:18
And assume its liability.
02:25
Second is deposit payoff.
02:30
Second option is deposit payoff.
02:38
So, in this option, the fdic pays off the insured deposits of the failed bank directly to the depositors.
02:46
So, fdic pays off the insured deposit directly to the depositor.
03:15
The bank is closed and its assets are liquidated to generate funds for the deposit payoff.
03:28
So, the second question.
03:35
In the case of heritage financial bank, the fdic chose the purchase and assumption option.
03:41
In the case of heritage financial bank, the fdic chose the purchase and assumption option...