Quote:
Originally Posted by Azure
I mean we don't expect any bank to be able to handle a bank run, but to me as someone who doesn't really understand the backend of banking, if I have have cashflow of $10 mil per month, which all goes into a bank, and then I use that to pay my employees, etc....it is extremely concerning that just by the fact that I am utilizing a bank like SFIB who clearly didn't have their ducks in a row, that money could be gone on Monday when payroll happens.
As a business I literally didn't do anything wrong, other than picking the wrong bank to work with.
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Ok, but there are a few considerations here. One is that they did have a bank run and there were withdrawals of $42bn in one day last week. So....clearly that's a big problem and it's not just a normal day of operations. The other consideration is that they're insured up to $250k, and there are services to manage that for you so that you're not incredibly exposed like this.
Just like Canada, there are four major banks in the US (JPM, Citigroup, Wells Fargo and Bank of America), where exceeding the FDIC (CDIC in Canada) would be less concerning than a smaller regional bank.