U.S. FDIC tells Signature crypto clients to close accounts by April 5

Re:U.S. FDIC tells Signature crypto clients to close account... by gerad on Tuesday March 28, 2023 @10:46PM (#35351633)

How do they keep $1.08 for every $1 deposited? Do they have some sort of magic money printing machine? Or do I deposit a dollar and only get ~$0.92 in my account? If the latter, that seems like a pretty bad deal.

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Re:U.S. FDIC tells Signature crypto clients to close account... by lxgr on Tuesday March 28, 2023 @10:49PM (#35351657)

I suppose the 8 cents could be shareholder capital? It's a pretty unclear why anybody would want to be a shareholder, though.

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Re:U.S. FDIC tells Signature crypto clients to close account... by unmole on Wednesday March 29, 2023 @02:05AM (#35353245)

> It's a pretty unclear why anybody would want to be a shareholder, though.

Yeah. It doesn't sound like a great idea. Sure, the bank can charge fees for maintaining accounts. But what do you do if you suddenly have a large influx of deposits? To maintain the 108% ratio you'd have to raise additional capital, fine. But what happens when deposits fall? Presumably that would reduce the fees collected and thereby reduce earnings per share with no feasible way getting out of the situation.

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Re:U.S. FDIC tells Signature crypto clients to close account... by UncleMeat on Wednesday March 29, 2023 @08:15AM (#35356085)

Especially given that you’d need to be an interesting person to choose to keep your cash in a bank account that charges a fee rather than pays interest in todays world.

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Re:U.S. FDIC tells Signature crypto clients to close account... by rrobukef on Wednesday March 29, 2023 @08:25AM (#35356207)

""Due to a larger than expected number of deposits we are obligated to introduce an 8% increase deposit limit fee.""

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Re:U.S. FDIC tells Signature crypto clients to close account... by lxgr on Wednesday March 29, 2023 @01:20PM (#35360291)

I suppose they could make holding stock mandatory too…?

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