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People are worried about what this means for confidence in regional banks. The prudent thing to do right now is to pull your money out of your regional bank an
by flappyeagle 4y ago
People are worried about what this means for confidence in regional banks.
The prudent thing to do right now is to pull your money out of your regional bank and move it to a GSIB and call it a day. This endangers regional banks and concentrates deposits into the large players.
You can stand your moral ground here or you can risk a string of bank runs and systemic collapse. It might not even make a difference anyways with how slow we’ve been to act.
- mlyle 4y agoOn the flipside, moral hazard is a real problem too. Setting the precedent that your regional bank can do whatever and you'll be just fine isn't great, either.