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Probably even done with no reciprocity. The big banks are eager to show their strength during a meltdown to get in good with the regulators and the public. This
by dsakljvalkjlkj 4y ago
Probably even done with no reciprocity. The big banks are eager to show their strength during a meltdown to get in good with the regulators and the public. This is one of those times the bankers should feel warm and fuzzy inside.
And... cash deposited at another bank still counts as risk-free cash for your capital requirements even if it's uninsured (hah!).
- eloff 4y agoPlus it’s “free” money. People have been fleeing from regional banks to the big banks, so they have all this sudden influx of deposits coming in. The interest they get from FRC is basically paid right back out to their new depositors and is a wash.