Organizing the trade book by significance

Matt Levine on bank resolution:

In theory, when a bank runs into trouble, the regulators should seize it and sell it to the highest bidder; the bidder should pay a price equal to its assets minus its liabilities. In the case of a failing bank, that number will normally be negative, but arithmetic with negative numbers is not particularly a problem. You just line the liabilities up from most junior to most senior, and start haircutting them until you get to the value of the assets.

Actually this is what Redneck architecture does all the time, interest charges are a resolution function. Notice this is asynchronous, adjustable  interest charges, essentially. The difference is the third party called bank owner.  Redneck don;t have one until you do three color.  Bots cannot own digits, just trade them on behalf of humans.