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To: ratan lal who wrote (72842)	10/18/1998 6:34:00 PM
From: nihil	Respond to of 176387

RE: Broker insurance Never said the government insured brokers, only that I would never invest in an uninsured bank or broker. As for bailing out banks, it is very rare and only when the authorities are spooked. Even in that case, the price is a complete loss of equity by stockholders and a house cleaned of executives. Prudent reorganization rarely allows the replacement of working bankers, because then no one could find anything. In liquidation (which is routine for failed banks) the uninsured depositors forfeit their uninsured deposits in proportion to the loss assigned to that class of creditors. The bank's assets are sold off to other banks (sometimes with a sweetener for the buyer) and the employees scramble to hook up with the buyer, who can usually name their terms. Big money to be made there. Nice talking to you, but, as you suggest, time to quit.