Re:FDIC Takes over Silicon Valley Bank
by xhrpost on Friday March 10, 2023 @01:41PM
(#35098954)
I don't think they "have" to pay the higher interest. Wouldn't they ultimately get that interest from parking money at the Fed over night? A bank isn't going to pay interest on money that results in a net loss, either they get it from the Fed or they are making private loans at a higher rate. Otherwise there would be no incentive to increase deposits as each would result in lost profits.
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