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Where is the run on the actual banks or are people trying to cause one to make a bunch of money?
by andy_ppp 4y ago
Where is the run on the actual banks or are people trying to cause one to make a bunch of money?
- slt2021 4y agobank run is silent. The fact you don't hear about doesn't mean its not happening. Retail (regular persons) are insured since almost everyone has <250k per account. They have no reason to change banks, that's why you don't hear anything. Small/medium/large businesses however are changing their treasury options right now as we speak, and run from regional banks towards big systemically important banks (top4 basically)
- andy_ppp 4y agoWhy? Everyone from SVB is going to be fine, they can withdraw their funds. It is not a good situation if the US ends up with 3-4 banks, this is why the guarantee is there from government.
- slt2021 4y agoI agree that it is bad if only 4 banks are left, but companies dont want to risk with their cash if something goes wrong with their bank. There is zero downside in changing bank from small -> big4, only upside