Comment: I really don't understand your question?

(See in situ)


I really don't understand your question?

When you say who would take the bad loans, do you mean who would suffer the loss, or do you mean that when the bank went into insolvency and ceased to operate who would collect what could be collected on the defaulted loan on behalf of the creditors of the bank?

If you mean who would take the loss, the bank itself would which is why it would likely become insolvent and be taken over by regulators. The liquidator, regulator or some trustee would take possession of the loans and do what could be done to collect whatever could be collected or sell them to some other financial institution at a discount, and then turn those proceeds over to the bank's creditors.

"Bend over and grab your ankles" should be etched in stone at the entrance to every government building and every government office.