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Re:FDIC Takes over Silicon Valley Bank by kccqzy on Friday March 10, 2023 @01:32PM (#35098797)
Actually if you think about the balance sheet for banks "too much money" is a problem for them because deposits are liabilities not assets. The money belongs to customers not the bank. The bank must pay back the customers on demand.

That said, I think historically many banks can easily avoid the "too much money" problem by setting the interest they pay on deposits to be low, and maybe even negative.

Re:FDIC Takes over Silicon Valley Bank by duxup on Friday March 10, 2023 @01:36PM (#35098866)
Agreed. Also too much money is hardly an automatic existential crisis. They can do what I described, get bought, merge, etc.

Of course if you dump it all into unwise investments, that’s a problem.