Mid-size banks ask FDIC to ensure all their deposits for two years

[WV222]

https://twitter.com/unusual_whales/status/1637201098464464896?s=20

https://twitter.com/business/status/1637201351783358465?s=20

[Lief 🗽]

Absolutely not lol, if midsize banks are this bad at being banks maybe they shouldn’t exist anymore.

[politicallefty]

This seems to be more about ensuring the overall stability of the system and preventing new bank runs than any new impending collapses. When it comes down to it at a fundamental level, stable banking is about confidence and trust in the system. We desperately need a new banking law, but unfortunately, I don't see the House working in good faith for such a bill. Anything outside of a new law needs to come with significant strings attached. Executives should be no better off than their worst-off employee if they fail or are otherwise bailed out.

[WV222]

This seems to be more about ensuring the overall stability of the system and preventing new bank runs than any new impending collapses. When it comes down to it at a fundamental level, stable banking is about confidence and trust in the system. We desperately need a new banking law, but unfortunately, I don't see the House working in good faith for such a bill. Anything outside of a new law needs to come with significant strings attached. Executives should be no better off than their worst-off employee if they fail or are otherwise bailed out.

This letter has introduced worry to the markets, especially if FDIC/Fed/Treasury/Biden Admin says no. I am assuming these banks think they can get this insurance, or I don't know why they would be so reckless with the letter.

[Skill and Chance]

This seems to be more about ensuring the overall stability of the system and preventing new bank runs than any new impending collapses. When it comes down to it at a fundamental level, stable banking is about confidence and trust in the system. We desperately need a new banking law, but unfortunately, I don't see the House working in good faith for such a bill. Anything outside of a new law needs to come with significant strings attached. Executives should be no better off than their worst-off employee if they fail or are otherwise bailed out.

This letter has introduced worry to the markets, especially if FDIC/Fed/Treasury/Biden Admin says no.

I am getting more concerned this might snowball.  So unfortunate because it truly is all in our heads!

[Tekken_Guy]

Is this good or bad news?

[jojoju1998]

Fingers crossed for my Credit Union.

[Ferguson97]

Are they too mid-size to fail?

[jaichind]

This is a terrible idea.  Surely these banks know the truth of banking under their fractional reserve system: "The bank does not have your money, it never did and it never will."  The entire system lies in the perception that the bank has your money.  What this idea says to all their depositors is "we do not have your money and for sure we will not have it 2 years from now.  Get ready to pull all your money out 2 years from now."  

[Benjamin Frank]

Absolutely not lol, if midsize banks are this bad at being banks maybe they shouldn’t exist anymore.

These banks are afraid of a run if the large banks are assumed by the public to be fully protected but they are not.

The obvious response is "go back to Dodd-Frank before 2018 and we'll fully protect you."

[Torie]

If their shareholders and creditors other than deposit holders are zeroed out first, sure. Go for it.

[oldtimer]

Absolutely not lol, if midsize banks are this bad at being banks maybe they shouldn’t exist anymore.

These banks are afraid of a run if the large banks are assumed by the public to be fully protected but they are not.

The obvious response is "go back to Dodd-Frank before 2018 and we'll fully protect you."

That is correct.

You either ensure all deposits or none are really ensured.