First Republic falls more than 40% to record low after reporting massive deposit drop

CNBC ^ | 4/25/23 | Jesse Pound

[ridesthemiles]

A BANK RUN == TAKING OUT THE DEPOSITS

[politicket]

Where do you think they get $$$$$$$ to loan out???

Simple.

From a customer signing a promissory note.

That creates a claim on future labor.

Debt-based money is nothing but claims on future labor.

[C210N]

Where do you think they get $$$$$$$ to loan out???

politicket is exactly correct.

Effectively, the "$$$$$$$" as you put it, the fiat, is simply created with some fancy-dancy juggling of account ledgers.

How do you think the M2 money supply increases?

[OrioleFan]

Our Credit Union is paying ~4 on a one year, but we’re getting >5 at our brokerage thru various banks across the country.

[Mouton]

If you knew a bit more about accounting and banking your advice would be worth zero. Loans are assets on a banks financial statement because they generate income. When there is a run on the bank and deposits leave they become insolvant because they cannot pay the later to leave unless they can borrow or raise equity. Stick to your day job.

[roadcat]

Our Credit Union is paying ~4 on a one year, but we’re getting >5 at our brokerage thru various banks across the country.

Wow, good deal. How does that work at the brokerage? We have 6 CD's outstanding, highest is 4.89 at our credit union. And new rates are starting to go down (thought they would go over 5 but no). Our investments with our broker are in stocks and money market with mixed results but doing okay despite carnage in the stock market over the last year.

[OrioleFan]

At TDAmeritrade you can select “Research & Ideas” then Under Bonds and CDs heading select “CD Center”. It gives you a list of maturities from 3 months to 5+years. So, for example Select “View 1-year CDs” and it gives you a list of CDs to choose from in a table (example below):

Maturity APY* Coupon Description Quantity
5/07/2024 5.15% 5.15 JPMORGAN CHASE BANK (OH) 4291
5/03/2024 5.1% 5.1 SAFRA NATIONAL BANK (NY) 2355
5/02/2024 5.221% 5.1 GOLDMAN SACHS BANK USA (NY) 5650

You select “Buy Now” and tell them the quantity in multiples of 1000 (so if you enter 10, then the cost is $10,000). You review your order and $10,000 is taken from your cash account to buy the CD’s.

Hope this helps.