4 ms·

Can someone ELI5 what this is about? I know that another bank is going through some trouble and I’m assuming this is somehow connected? Or not? I am unfamiliar

Can someone ELI5 what this is about? I know that another bank is going through some trouble and I’m assuming this is somehow connected? Or not? I am unfamiliar with this bank or this form.

nemo44x 4y ago
Contagion. People are nervous that other banks are as insolvent as SVB. And even if those banks aren’t, nervous people making a bank run could replicate this. And if another bank falls, then another it would increase velocity and spread more rapidly until every bank is wiped out.
- mFixman 4y ago
  I have an account with First Republic. Should I panic and desperately try to withdraw all my money?
  - mbbbb 4y ago
    Only if you have more than 250k in the account - the first 250k is insured by the government and if the bank fails is typically paid back in less than a week.