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I could see it going both ways: If I’m a smaller client/business that regularly has $400k in my Bank of America account, I might now split it between BoA and a
by Scoundreller 4y ago
I could see it going both ways:
If I’m a smaller client/business that regularly has $400k in my Bank of America account, I might now split it between BoA and a new account at a small bank down the street just to keep under $250k at all times.
Keeping bajillions over fdic limits was always a risky affair. Not sure how many smaller banks actually have/had volumes of accounts like that but I could see SVB being an exception.
- agloe_dreams 4y agoI agree, though I think it is more likely that those over FDIC limits will move from a smaller bank to a more stable larger bank, purely because they have more reason to worry. SVB being an exception is absolutely true though.