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So I see Ally may be at risk too, great I have savings there... Pretty scary to go from thinking you have a safe emergency fund regardless of the market to a p
by SigmundA 4y ago
So I see Ally may be at risk too, great I have savings there...
Pretty scary to go from thinking you have a safe emergency fund regardless of the market to a potential bank run seemingly overnight.
Wondering what tomorrow will look like and how many people are wait to transfer funds out of any at risk bank.
- ninjazee124 4y agoIf you have anything less than 250k in cash, it’s silly to transfer it out
- SigmundA 4y agoIt may be irrational, but then irrational behavior is whats leads to bank runs. Why should I keep my money there if I can hit a few buttons and move it somewhere with less perceived risk? What if every one is thinking like that? Great FDIC will step in quickly, I hope. I think tomorrow will be interesting in general to see how things hold up.
- Ekaros 4y agoThere is risk of it being locked up for some period. Specially if the system gets busy and there is multiple banks failing at one time.
- mikeyouse 4y agoNah, FDIC-insured funds are available the next business day in every bank failure. Funds over the limit could be locked up but their primary goal is to make sure that $250k is ~immediately available.
- Ekaros 4y agoWould that actually be case if a dozen banks failed in single day or a hundred? Does FDIC have enough man power to handle all of these banks at one time simultaneously?
- lbotos 4y agoI suspect that’s why they are offering 1.5-2x comp for SVB employees at the moment. They know the SVB systems. They are these power to get out of the situation. I imagine the same would happen in other situations.
- sgerenser 4y agoWhat? AFAIK the FDIC just keeps paying employees as normal. Where’d you hear about 1.5-2x comp, except perhaps in the event they’re hourly employees working overtime, which would just fall under normal overtime rules not some special FDIC bonus.
- mikeyouse 4y agoEmployees at SVB have roughly the same game theory decisions to stay or leave as depositors did. It costs nothing to leave right now and go work for a rival bank, but the last person out the door is going to have a very hard time… there are only a certain number of jobs / job opening for their roles so the FDIC did indeed offer a premium to keep them around. https://www.forbes.com/sites/jackkelly/2023/03/11/some-silicon-valley-bank-workers-will-be-offered-a-premium-to-their-salary-to-help-the-fdic-start-sorting-things-out/amp/ https://www.forbes.com/sites/jackkelly/2023/03/11/some-silic...
- gadflyinyoureye 4y agoI was thinking to pull out my money. Maybe Redneck bank, but ultimately chose not to this morning. I have less thank 250k. I might pull out 40k for 4 week bills. But that’s just for better interest while staying relatively liquid.
- sgerenser 4y agoThere hasn’t been a reason to be in Ally for at least the past year or so, they’ve been WAY behind other banks in raising their rates along with the Fed rate hikes. Tons of competitors are offering 4-5% now on savings, and short-term T-Bills and money market funds are also above 4%.
- Mistletoe 4y agoThe gang finds out about fractional reserve banking.
- alexnewman 4y agoBanks do not lend against deposits. Fractional reserve banking is not what we do
- reducesuffering 4y agoNow this is a strange bank
- deleted 4y ago[deleted]
- drstewart 4y agoNo bail out! It's your own fault for! You shouldn't have taken such insane risks! You deserve to lose your money, that's capitalism in action! We shouldn't socialize your losses!
- pyrophane 4y agoWhat makes you say that, other than the fact that Ally is a smaller bank?