The Board believes, however, that an explicit policy that requires imposition of uninsured depositor
loss--no matter how small--is likely to increase the risk of depositor runs and to exacerbate the depositor response to rumors.
If, in fact, proposals that rely on uninsured depositor
discipline, risk-based premiums, and structural changes in the delivery of bank services raise significant difficulties, reform should then look to other ways to curb banks' risk appetites, and to limit the likelihood that the deposit insurance fund, and possibly the taxpayer, will be called on to protect depositors.
Immediate and full payment of insured and uninsured depositor
claims has both advantages and disadvantages.
One bond trader said: "If you're an uninsured depositor
at a bank in Spain you wouldn't be too happy about this.
Imposition of resolution costs on uninsured depositors
The FDIC has estimated that the $32 billion IndyMac Bank, which failed on July 11th, left approximately 10,000 uninsured depositors
The current state of discussions around the prospective programme for Cyprus suggests that some of the creditors would not be willing to provide funds for recapitalisation of the Cypriot banks and would require a bail-in of uninsured depositors
to be implemented instead.
2 billion, gave special powers of attorney to a group called Coalition of EIB Uninsured Depositors
seeking the rehabilitation of the bank as an alternative to liquidation.
The Pritzker interests and the Dworman interests hope that the agreement will minimize, if not eliminate, losses by the insurance fund and by Superior's uninsured depositors
No matter what the Congress decides on deposit insurance limits, we must be cautious of our treatment of uninsured depositors
Fitch believes that recovery prospects for uninsured depositors
beyond the FDIC's 50% advance dividend is possible as uninsured depositors
have priority claim over unsecured creditors.
The crisis led to the shuttering of Laiki, the island's second largest bank, and a restructuring of the largest lender, Bank of Cyprus, which was 'bailed-in' by uninsured depositors
as part of a rescue deal with international creditors.