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.
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.