19-37 The ability of the FDIC to place a bank into receivership even though the book value of capital remains positive is an attempt to institute increased stockholder discipline.

Question

Quizplus · Accepted Answer

This statement is true. The FDIC's ability to place a bank into receivership even with positive book value of capital is intended to increase stockholder discipline and accountability, as it encourages shareholders to closely monitor and actively address potential risks and issues within the bank.

19-37 the Ability of the FDIC to Place a Bank