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And Janet Yellen, before Congress, will NOT commit to backing all account holders to 100% of their account balance unlike the FDIC did with SVB. Community bank
by mikece 4y ago
And Janet Yellen, before Congress, will NOT commit to backing all account holders to 100% of their account balance unlike the FDIC did with SVB. Community banks are seeing a massive outflow of large accounts to banks which are considered to be "preferred" and will have all accounts fully protected which could cause a cascade of failures of community banks as their assets under management start to disappear.
- overthrow 4y ago> Community banks are seeing a massive outflow of large accounts to banks which are considered to be "preferred" I don't doubt this, but do you have a source? I'd love to know the actual numbers behind this.
- armada651 4y agoThe result of this is going to be everyone putting their funds into "too-big-to-fail" banks and we'll see the largest consolidation of banks in recent history. Which means a few institutions will have all the negotiating power to screw over depositors as much as they'd like. This is all just a big self-inflicted wound, wealthy depositors are cutting off the arm to try and save the hand.