SVB was bailed out and able to pay back people who deposited money. What happens to you if you are part of a local bank or credit union, and they cannot get you your money for withdrawal? Will you be bailed out?
The statement from this meeting is chilling. Only if a super majority of the FDIC, FED, and the President determine if the failure of a bank would create systemic risk and significant economic and financial consequences. This is not good if you are part of a local or community bank.
What is happening right now is people are moving their money to large banks that it is likely you will be bailed out no matter what your amount of deposit is. The big banks are:
- JPMorgan Chase.
- Bank of America.
- Citigroup.
- Wells Fargo.
- U.S. Bancorp.
- PNC Financial Services.
- Truist Financial.
- Goldman Sachs.
This creates an unfair advantage for big banks who are making stupid decisions. If a big bank makes a bad financial decision to buy bonds at low interest rates, or buy mortgage backed securities, and take on all that risk without any consequence, this encourages bad behavior.
I expect to see tons of people moving their money from their local banks or credit unions to larger banks because the larger banks are getting preferred treatment.
This is messed up. Something needs to be done here. Is Cryptocurrency the answer here because nobody controls it?
Online writer since 2008. I enjoy writing and have written nearly a thousand tech related articles about electric vehicles, software, tech companies, hardware, gaming, tech related products, and company developments in tech.
