Submitted by PussyBreath007 t3_1264nxo in wallstreetbets
robbinhood69 t1_je7obv3 wrote
all the big banks had deposits grow as FRC depositors fled
those same big banks, deposited the same money back at FRC, presumably for interest
if the same big banks would have refused, FRC would have collapsed and thru FDIC those big banks would have had to repay the depositors anyways
this is a freaking shell game OP and you are falling hook, line, and sinker for it. Also, the deposits are only agreed upon for 120 days. Tick tock, u still have time to exit this position before u get 0'd bro
PussyBreath007 OP t1_je7pv3b wrote
I’m not sure why you think the $30B in deposits from the big banks is all FDIC insured. The Fed has made no such claim. Their stance has been opaque at best. You’re making the assumption the big boys deposited $30B at FRC with zero risk.
I’d imagine you own $0.50 puts then, no? Since $FRC’s demise is a foregone conclusion and all…
robbinhood69 t1_je7qu5c wrote
It’s not at 0 risk u dummy, it’s just that they’d have had to bail the bank out ANYWAYS
Anyways whatever OP go die on this hill if u want hf going to 0
PussyBreath007 OP t1_je7rcoj wrote
The big boys “had to bail FRC out anyway”… you’re delusional. Like any other competing bank, they would have gladly let them go to zero. In fact, the prevailing narrative was - MOVE YOUR $$$ TO THE BIG BANKS QUICK!!
They deposited $30B because they saw a low-risk option to make easy interest from a bank with a much better balance sheet than SVB. I don’t understand how you think this equates to FRC is going to zero, especially when you just acknowledged JPM, Citi, BofA, etc are taking on some level of risk. They won’t lose here, and neither will FRC
Responsible-Rip4366 t1_je7yz9l wrote
This comment proves you know nothing about the banking system and the political shitstorm these failures have kicked up.
I award you no points, and may God have mercy on your soul.
PussyBreath007 OP t1_je80eje wrote
Fair enough. This is WSB after all
Responsible-Rip4366 t1_je7ypew wrote
Correct. Also, big banks did this as a PR stunt to distract FDIC from imposing the majority of the coming deposit assessment on them. Lots of political pressure to make GSIBs pay the assessment to keep smaller banks from having to pay any of it.
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