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A comment on Joint Statement by the Department of the Treasury, Federal Reserve, and FDIC. Parent comment

Re:Joint Statement by the Department of the Treasury, Federa... by yzmtf2008 on Sunday March 12, 2023 @10:13PM (#35129946)
Let me put it this way.

I put the majority of my cash in one of the smaller banks. The news that has transpired in the past few days had me mulling moving those funds to a larger bank, likely Chase (one of the too big to fail ones).

Even with the FDIC guarantees, I was not at all confident that :

1. they actually had the funds to cover _many_ bank runs; and

2. it won’t take weeks if not months for me to recover my funds, if my bank fails.

It’s entirely possibly that these lines of thoughts will motivate many more people to consider this exact move, putting even more stress in the system.

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Re:Joint Statement by the Department of the Treasury, Federa... by ghastmaster on Sunday March 12, 2023 @10:39PM (#35130248)
With the Bank Term Funding Program, people who moved or previously kept monies in large banks have less incentive to do so, until 2024 when this program is scheduled to end. That is, if they think 25 billion is enough to prevent more runs, and the FED/treasury/FDIC will not greatly expand that in the event of another run.
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Re:Joint Statement by the Department of the Treasury, Federa... by ericpauley on Sunday March 12, 2023 @10:34PM (#35130189)
The FDIC is backed by the full faith and credit of the US government. If a bank fails, your insured deposits will be made while, usually the next business day.
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Re:Joint Statement by the Department of the Treasury, Federa... by twblalock on Sunday March 12, 2023 @10:36PM (#35130212)
That's true, but many people will still freak out anyway.
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Re:Joint Statement by the Department of the Treasury, Federa... by randomname11 on Sunday March 12, 2023 @11:38PM (#35130685)
the same faith and credit that’s currently caught in the middle of a game of chicken…
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Re:Joint Statement by the Department of the Treasury, Federa... by brianwawok on Monday March 13, 2023 @12:43AM (#35131181)
Not sure what that means. When has the US government not paid their FDIC money?
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Re:Joint Statement by the Department of the Treasury, Federa... by fredophile on Monday March 13, 2023 @02:53AM (#35132043)
The US government has a debt limit. The government is going to run out of options for not exceeding that limit in a few months unless it is raised. There are people in congress suggesting that they should let the limit get hit. If the debt limit is hit, do you e pectin the government to be able to pay out FDIC money in a timely manner?
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Re:Joint Statement by the Department of the Treasury, Federa... by randomname11 on Monday March 13, 2023 @10:57AM (#35136558)
Not just FDIC though, in 2008 and again today the Fed is making clear that their backstop is bigger than just FDIC. it can’t be any bigger than the debt limit so I find it sobering to have this discussion while we’re heading towards that cliff.
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Re:Joint Statement by the Department of the Treasury, Federa... by notch898a on Monday March 13, 2023 @12:31AM (#35131099)
Will changes to probably in the context that FDIC only has reserves of approximately ~1% of the total insured value.
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Re:Joint Statement by the Department of the Treasury, Federa... by vel0city on Monday March 13, 2023 @01:34AM (#35131523)
IMO you should probably do business with multiple banks with somewhat separate market segments to try and diversify risks. You shouldn't have all your cash under one mattress ;)
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