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A 100% haircut would mean that their assets are effectively worthless. I highly doubt that the depositing banks would have done this if that were the case.


Even if their assets are things like Treasury notes? I'm assuming JPM would get first dibs on those types of assets if First Republic went under, no?


Yes, that‘s my point: Even in case of an unprecedented interest rate hike and 10-year treasuries, the haircut due to depreciating asset values would not be 100% but much less.


Sorry, I misinterpreted your first post but thank you for clarifying.




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