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Let me put it this way. I put the majority of my cash in one of the smaller banks. The news that has transpired in the past few days had me mulling moving thos
by yzmtf2008 4y ago
Let me put it this way.
I put the majority of my cash in one of the smaller banks. The news that has transpired in the past few days had me mulling moving those funds to a larger bank, likely Chase (one of the too big to fail ones).
Even with the FDIC guarantees, I was not at all confident that :
1. they actually had the funds to cover _many_ bank runs; and
2. it won’t take weeks if not months for me to recover my funds, if my bank fails.
It’s entirely possibly that these lines of thoughts will motivate many more people to consider this exact move, putting even more stress in the system.
- ericpauley 4y agoThe FDIC is backed by the full faith and credit of the US government. If a bank fails, your insured deposits will be made while, usually the next business day.
- twblalock 4y agoThat's true, but many people will still freak out anyway.
- randomname11 4y ago[flagged]
- brianwawok 4y agoNot sure what that means. When has the US government not paid their FDIC money?
- fredophile 4y agoThe US government has a debt limit. The government is going to run out of options for not exceeding that limit in a few months unless it is raised. There are people in congress suggesting that they should let the limit get hit. If the debt limit is hit, do you e pectin the government to be able to pay out FDIC money in a timely manner?
- randomname11 4y agoNot just FDIC though, in 2008 and again today the Fed is making clear that their backstop is bigger than just FDIC. it can’t be any bigger than the debt limit so I find it sobering to have this discussion while we’re heading towards that cliff.
- notch898a 4y agoWill changes to probably in the context that FDIC only has reserves of approximately ~1% of the total insured value.
- ghastmaster 4y agoWith the Bank Term Funding Program, people who moved or previously kept monies in large banks have less incentive to do so, until 2024 when this program is scheduled to end. That is, if they think 25 billion is enough to prevent more runs, and the FED/treasury/FDIC will not greatly expand that in the event of another run.
- vel0city 4y agoIMO you should probably do business with multiple banks with somewhat separate market segments to try and diversify risks. You shouldn't have all your cash under one mattress ;)