With Hanover falling over, how many finance companies are left? There would be so little interest in putting money anywhere near one of them that they must all be struggling with lack of deposits / investments versus some proportion of under or poorly performing borrowers. In each case, we hear about thousands of investors who have either lost their money or won't see it for a long time. How many of those people are elderly and dependent on income for that money?
The average investment at risk in Hanover's $465M from 13,000 investors is just under $36,000 each. Some will have been much larger and many smaller. But that's a reasonable sum to have at risk for anyone of modest means.
Now we have to wait and see what the impact of this is on other financial institutions and people dependent on Hanover. Will it amplify in the next failure? Or is this the last big puff of stink from a sector whose business model has disappeared?
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