In this week's episode, sprocket888 and viperxl007 are only one week after the discussion on $FRC and whether it should be traded. Well, $FRC is no longer around. Their assets have been seized and sold to JP Morgan. viperxl007 and sprocket888 talk about what unfolded and what lessons they learned. This is the first stock that each of them has held that ended up delisting and essentially going to $0. They also discuss the hauntingly similar aspects of the regional banking crisis with the financial market meltdown in 2008. The current regional banking situation unraveled and exploded so fast. In this episode they look at the mechanics under the hood that essentially led several of these giants to disappear overnight. The interesting aspect of this is there was nothing complex or fancy. It was just pure and simple poor risk management of the capital investments of the bank. As with every new situation, there are lessons to be learned. This time we learned what happens when a bank enters receivership under the FDIC and what happens to the equity and bond holders.
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