Ha they actually only say it’s for kyc aml or security measures but really it’s because they don’t have the money and can only stem a bankrun by gating withdrawals at all times
First republic bank imploded so fast because their niche was convenience in not having limits
All the banks have the same problem, they’re holding us treasuries with customer deposits at a huge loss right now. the regulations say they don’t have to disclose the current market value of government bonds like us treasuries, so as long as they never need the money they’ll get it all paid by the government over time, but if they ever do need the money sooner they’ll have to liquidate the bonds at their current market value and never have enough to pay everyone.
My advice, have accounts at minimum 2 banks at all times. Doubtful you will lose money, but you can lose access to your funds\paying bills for a short time, plus any bank, at any time can choose not to do business with you.
First republic bank imploded so fast because their niche was convenience in not having limits
All the banks have the same problem, they’re holding us treasuries with customer deposits at a huge loss right now. the regulations say they don’t have to disclose the current market value of government bonds like us treasuries, so as long as they never need the money they’ll get it all paid by the government over time, but if they ever do need the money sooner they’ll have to liquidate the bonds at their current market value and never have enough to pay everyone.