Why Databank May Not Survive Their Cash Trap.

Why Databank May Not Survive Their Cash Trap.

Highlights

a. We all know how the collapse of financial companies began. The first sign of a collapsing company to the public eye, at least in recent years, is when they are unable to meet withdrawal and redemption requests from the customers.

b. The fact that a financial institution is unable to serve customers their withdrawal demands means there is something fundamentally wrong going on in the company, which may not be resolved immediately.

See also: Databank’s Trouble. Other Investment Firms In Mess [Find get the hint]

c. The fight that withdrawal requests can not be met and announced publicly by the company, would definitely lead to the second wave of trouble for the company. That is, deposits or investments in the company will dry up.

d. Lack of deposits and inability to serve a withdrawal request creates a double trouble effect.

See also: Databank Offices Closed Nationwide Due To Cash Liquidity Challenges: Works Remotely, According To Press Release [Details here]

e. What this type of situation means is that the company will have to fall on all reserves to pay customers until there are no more reserves available.

f. The absence of any sign of recovery finally leads to liquidation of the company involving auctioning of the company’s assets to properly and officially collapse the company.

See also: Strike By All Labour Unions Called Off [Citi Eyewitness News Report]

g. For now, it seems Databank is only in the first wave of trouble and about to enter the second wave of a dried deposit.

h. Until the situation is resolved as early as possible, the firm is heading. to the wrong road

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