This is where The Swamp will cave. FedGov has to borrow money so the banks can lend the money back to FedGov. It’s a never-ending cycle and becomes the principal driver of inflation.
It’s time to let the bank fail, and let the stupid depositors lose everything over the FDIC threshold.
This Freeper is spending the weekend meeting with his senior management to figure out how to pay their employees, and determine if they can even open for business tomorrow.
I don’t know what has happened to this website over the years, but I swear the average IQ has dropped by at least 20 points since I joined … and there are a lot of ignoramuses stinking the place up.
https://www.nasdaq.com/articles/trump-deregulating-banks-heres-what-means-you-2019-02-12
This didn’t help.
Businesses are not stupid depositors - they have to keep millions in liquid cash somewhere to cover payroll and operations. Putting it in 50 different backs to try to stay under the FDIC limit is extremely counterproductive.
The problem is - retail banking is a utility function, and safety of deposits is paramount. Retail banking needs a hard and impenetrable firewall between its operations and the speculative ventures of investment banking. Which it had until 1999, when Phil Gramm and the Republicans insisted on repealing Glass-Steagall and letting the gamblers loose.
Every medium and large company is now forced into partnership with some speculator or another, and just has to hope the management can restrain its impulses far enough to keep its depositors relatively safe.
The likely solution is to just borrow a few more trillion into existence to cover endangered deposits across the industry - but as one commentator said of the COVID stimulus "Hey, we're a rich country. We can afford it." /s