Are All These Bank Failures
- Thread starter Monroe Claxton
- Start date
Does "transitory" mean "because the Fed failed to perform their regulatory duties"?
SVB - extremely poorly run regional bank
First Federal - huge % of their deposits were uninsured (above FDIC limit) which, if you know anything about banking, are generally seen as 'hot' money and are typically much more likely to be pulled at a moment's notice, which puts the bank's regulatory reserves at risk.
Big banks are not at risk as the 08-09 fiascos made the Feds clamp down very hard on them. Regional banks can get away with mismanagement a lot easier.
No way of knowing but very doubtful this is systemic to the entire banking industry. Two examples of how not to run a bank blowing up.
First Federal - huge % of their deposits were uninsured (above FDIC limit) which, if you know anything about banking, are generally seen as 'hot' money and are typically much more likely to be pulled at a moment's notice, which puts the bank's regulatory reserves at risk.
Big banks are not at risk as the 08-09 fiascos made the Feds clamp down very hard on them. Regional banks can get away with mismanagement a lot easier.
No way of knowing but very doubtful this is systemic to the entire banking industry. Two examples of how not to run a bank blowing up.
Chase
Bank of America
Wells Fargo
These will be our only choices at some point and then the US will create its own crypto to be used.
Bank of America
Wells Fargo
These will be our only choices at some point and then the US will create its own crypto to be used.
Feds may raise the amount of insured deposits especially for business accounts. I know it was a problem when I was in business. , during 08-09. We put money in 10 or 12 banks around town to protect our accounts.