FDIC Takes over Silicon Valley Bank

Re:FDIC Takes over Silicon Valley Bank by duxup on Friday March 10, 2023 @02:33PM (#35099631)

I think there is a limit. The bank costs money to run, customers expect interest (even if little).

That money isn’t doing anything to cover those expenses if some of it isn’t “working” to produce returns.

[ Parent | on HN ]

Re:FDIC Takes over Silicon Valley Bank by pishpash on Friday March 10, 2023 @02:47PM (#35099868)

Banks don't pay the Fed rate on deposits so they already have that to pay expenses. In fact more deposits = more money on the interest differential but expenses don't scale with money.

[ Parent | on HN ]