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Bank Run

Unless you are a bank executive thumbing through your millions defending banks is really weird.
 
I thought one explanation is that it's generally in place to help prevent bank runs period. If there's a safety net at all for folks, even if it's "only" $250k this should slow the folks who panic and rush to withdraw money if they fear there are bank issues.
 
mikedrum4prez said:
seems to me like there is a solid case for raising the FDIC limits on corporate accounts? I'm not sure it's realistic to expect a company to do their payroll out of several different bank accounts, but I'm also not in accounting not really sure how it all works.
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There are products that will spread your cash around to a bunch of different banks and then one of the banks meets your cash needs and draws from the other banks. They cap out though at like 10M I believe. So thats one way a business could get more insurance without all the hassle of having to manage each of the accounts.
 
TownieDeac said:
Yeah this is why I ask, it feels like a failure at the bank manager level but maybe something regulators should have a better handle on too.
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No doubt SVB fucked up. But when you have Powell three or four days before the collapse saying there's no risk to the system associated with the rise of interest rates that's been happening at a quick pace, you do also have a regulator issue. I think there are very few people who were working back in the 1980's with any experience. The fact there's so much money in the system also likely complicates things. We've "printed" (I hate that term) like 50% of all USD that has ever come into existence in the last 3 years.
 
DeacMan said:
I'd like to know how long that particular limit has been in place. I know we started the program in the 1930's. When was 250K set as a limit I do not know.
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my FIL has an old bank door that he uses for the door to his home office. The top 1/2 of the door is glass and there is a "gold" (doubt it's really gold) medallion set in the glass that says "FDIC insured $10,000", he got it from a building that had been sitting vacant since the 50s that he helped a friend who owned it clean out.
 
imagine losing everything up to 250k

jesus how could someone live on just that amount of money
 
Kory said:
imagine losing everything up to 250k

jesus how could someone live on just that amount of money
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It's mostly companies. I imagine very few individuals have that much in 1 bank.
 
DeacMan said:
No doubt SVB fucked up. But when you have Powell three or four days before the collapse saying there's no risk to the system associated with the rise of interest rates that's been happening at a quick pace, you do also have a regulator issue. I think there are very few people who were working back in the 1980's with any experience. The fact there's so much money in the system also likely complicates things. We've "printed" (I hate that term) like 50% of all USD that has ever come into existence in the last 3 years.
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my prepper forums have been spreading the leaked FDIC or Fed meeting where the guy said he knew there would be bank runs but we can't tell the public for the past month or two.
 
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