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dbgtboi t1_je8bxed wrote

Reply to comment by PussyBreath007 in $FRC - Puzzle Pieces by PussyBreath007

>As far as your claim “big money left” why would BofA, Citi, JPM etc just deposit $20B if they suspected their deposits would disappear?

You're way overthinking this. Look at banking stocks right now, they all got slammed because of the bank issues. They helped FRC because if FRC went bust it would take them down even further. They didn't help FRC out of love, they helped FRC to save their own asses because they knew the government / the fed would have let FRC blow up.

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PussyBreath007 OP t1_je8cgdx wrote

I believe you’re underthinking it. The prevailing narrative as these regional banks were collapsing was to get your $ into the largest banks. If anything, the more regional banks that went under, the more depositors would flee to the big boys… of course they didn’t do it for love, they did it because they see FRC as a low-risk, short-term-high-reward investment because it’s being unfairly lumped into the same group as SVB and Signature (who both a had a much different, irredeemable type of exposure)

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dbgtboi t1_je8d9h5 wrote

With every banking crisis comes increased regulation which is bad for business and profits. Even if the big boys got more deposits, they would get kneecapped by the government and any new regulations will last a lifetime.

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SuperAmerica123 t1_je8zwoz wrote

Right. Because in 2009 after everything collapsed the Banks went bankrupt and definitely had very strict regulations that were ruthlessly enforced up until today…

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517UATION t1_je8o0co wrote

By lifetime I think you mean the next Republican president.

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