Comment: The bad loans may not be

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The bad loans may not be

The bad loans may not be sold off at all. They usually remain the property of the bad bank. The proceeds from them (or from foreclosure) would go first to the bank's creditors (including FDIC), then bond holders, then preferred stockholders, then common stockholders. Stockholders usually get nada. If the loans are never paid off, they are never paid off. Whoever was foolish enough to buy stock in the bank or lend it money for bonds are simply out of luck.

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