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> kill the (dumb) industry of sweeping deposits into <=$250k accounts at many banks I like that system: it props up several banks instead of just one "winner-
by Scoundreller 4y ago
> kill the (dumb) industry of sweeping deposits into <=$250k accounts at many banks
I like that system: it props up several banks instead of just one "winner-take-all" that does the most risk and externalizes the costs to uninsured depositors (and sometimes FDIC) when it blows up.
- loeg 4y agoThe alternative system doesn't have uninsured depositors at all. Arguably this could be better for the multitude of banks. It's mostly worse for the businesses offering sweep services for a fee / net interest margin.