Page 32 - Deposit Base News Today : Breaking News, Live Updates & Top Stories | Vimarsana

The banking sector. we had this global ripple effect. i do think it's important to separate out these two things. eyes are on all banks now, globally. what are they holdings? this is not yet, at least, 2008, because we have a better sense of what's on the balance sheets. we didn't in 2008. >> i think that race is such an important point. regulators new over this entire year and a half span, that we're raising interest rates dramatically, that puts real pressure on these long term treasury is at the low interest rates that svb was holding the math. it makes them less attractive to the market. w...

The management should have hedged the long-term bonds they had when they knew that interest rates were going up. they should have diversified their bank accounts and the regulation should apply to large regional banks they lobbied in 2018 to be exempt from some of the dodd frank stress and liquidity tests. that was a mistake we need to strengthen those regulations. >> so would those liquidity tests have made a difference in 2023 >> they would have, jose i mean, if you had had a stress test here, people would have figured out that silicon valley bank didn't have a diverse deposit base that they...

Pervasive to the entire banking sector although they very well may be. ultimately the entire banking sector did the same thing. that is they watched their deposit base wither over the last 12 months while the fed was raising interest rates. people like you and me looked at it and said, why am i putting my money in the bank and getting zero when i can buy a treasury bill and get 3%, 4%, 5%. their deposit base was shrinking at the same time all those assets that they held that you talked about last night, the treasuries and whatnot, were declining in value. and they sat there and did nothing abo...

Aren't pervasive to the entire banking sector, although they may very well be . but ultimately, the entire banking sector did the same thing, and that is that they watched their deposit base wither over the last 12 months while the fed was raising interest rates, because people like you and me looked at it and said, why am i putting my money in the bank and getting zero when i can buy a treasury bill and get three, four or five percent as the fed kept raising rates so their deposit base was shrinking at the same time, all those assets that they held that you talked about last night, the treasu...

Systemic effect it has. i think what happened is we were so focused on the too big to fail that i think a lot of us were saying, yes, but bank number 11, bank number 30, bank number 75, if you're a depositor, it's too big to fail in your life in, your business, and i think that's what we saw this weekend. >> that's right. are we at a point though now as a country -- i say this with the caveat most people don't have $250,000 in savings. if the fdic limit is there, they will be fine. but banks are making payroll for small companies, so therefore having the deposit base safe matters and matters s...