[stephen_g]

Yes, issue for the depositors is how long it might take. Digging through the closed banks history at the FDIC is fascinating - https://closedbanks.fdic.gov/dividends/

Sometimes up to ~75% of the funds is paid out within weeks of collapse, but for some banks it’s only 10 or so percent. Most of the time it seems to end up with over 90% being paid out (sometimes it’s 100%), but the payments can come over ten or more years!

Often seems to be one within weeks, one in the next month or two, and then the payments seem to start coming every three or so years.

[senttoschool]

Well, if depositors can wait 10 years, they will absolutely get 100% back. The assets are worth more than the deposits right now if they aren’t sold in a fire sale.

The problem now is that startups need the money quicker than 10 years. But to sell everything now means a giant haircut.