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Considering many of these banks capital position at the time though, they probably would have been wiped out in domino fashion.
"Rebellion to tyrants is obedience to God."--Thomas Jefferson
no they wouldn't have. they'd have written down these sums, rec'd a partial -market value - redemption payment, and suffered for a couple of years while ideally trying to rebuild capital so that they can weather their next major $#@!-up.
i'm not buying this "systemic failure" that will bring down the whole house-of-cards line of thinking for one second. in fact, i imagine the opposite happening where deposits and capital move to these community banks limiting the magnitude of new entries in the "BFF" (bank failure Friday) thread.
it would have hurt Warren Buffett though....
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