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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by lmm on Sunday March 12, 2023 @07:16PM (#35127937)
The government can't generally arbitrarily seize an operating business. (Indeed, in the recent Johnson & Johnson court case we saw the opposite: they asked to undertake bankruptcy proceedings early because they're facing a large liability, the government said no, not until you're proven to be actually bankrupt)
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Re:Joint Statement by the Department of the Treasury, Federa... by nullc on Sunday March 12, 2023 @09:32PM (#35129482)
Sounds like a bit of a hazard: the difference between insolvent or not for many entities is just accounting conventions. Lock in some non-MTM losses-- wham!-- insolvent.

Why should bankruptcy protection be denied to any entity that would be unquestionably qualified if they simply took an additional legitimate action that would make their creditors worse off?

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