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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 xmonkee on Sunday March 12, 2023 @11:14PM (#35130528)
what’s stopping a bank from making really risky loans, give super high yields? Everyone will go to that bank since there is no risk to them?
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Re:Joint Statement by the Department of the Treasury, Federa... by bandrami on Monday March 13, 2023 @02:37AM (#35131926)
Because that's not how modern banking works. This isn't George Bailey lending out deposits; retail banks don't use deposited money at all it just kind of disappears.
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