[LRoggy]

How original . . . NOT!

I’ve been reading this stuff for the last thirty years. Check out Adam Smith’s book ‘Paper Money’, written in the early 80’s.

Brokered deposits is just a fancy term for financial institutions and sovereign funds diversifying the places they place deposits.

Even in the days of the Soviet Union, Russia kept deposits in Western banks. This guy thinks he sees something risky?

[darkwing104]

I’ve been reading this stuff for the last thirty years. Check out Adam Smith’s book ‘Paper Money’, written in the early 80’s.

I'll check it out. Thanks to fellow FReepers, this month I've learned more about the factors causing this crisis than any other source.

[GoodDay]

This guy thinks he sees something risky?

Indeed. Haven't finished the article yet, but so far the author is beginning to sound like a shill for regulators. He writes of "brave" regulators worrying over this or that practice of private banks.

This points up the difference between economics and finance as disciplines; they're not the same, and finance people usually have little or no understanding of basic economic principles. Private banks, like all other private businesses in a market economy, act "rationally"; i.e., they employ certain means at their disposal to achieve certain desired ends, namely profit. If banks start making risky loans or risky investments, it's because an incentive to act in a risky way has been planted in the economy -- invariably by the government via the Treasury or the Federal Reserve.

[Jimmy Valentine]

Bingo! Regulators have been monitoring every banks use of brokered deposits for years. If your ratio of hot money to core deposits is too high you are required to cut back.

Nothing new here.