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A comment on Brexit Is a Lehman Moment for European Banks. Parent comment

Re:Brexit Is a Lehman Moment for European Banks by cm2187 on Sunday July 10, 2016 @11:17AM (#12065861)
A bank is solvent, Madoff wasn't. Madoff didn't have any asset, the cash you would have invested with him had been used to pay off other investors.

A bank has assets, the money you lent the bank (through your deposit) is invested in a mortgage, backed by a property. You will ultimately get your money back. but it is a timing issue (and therefore liquidity), not a solvency issue.

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Re:Brexit Is a Lehman Moment for European Banks by WillPostForFood on Sunday July 10, 2016 @02:48PM (#12066670)
It's a liquidity issue if the bank invested in mortgages (usually), but it can be a solvency issue if they are invested in debt (sovereign or corporate) that can be defaulted on.
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