Selected comments from:
https://www.zerohedge.com/markets/us-bank-deposits-tumbled-10th-straight-week-small-banks-lost-275-billion-march...Here's to all those who think if you use 200 billion of the total 120 billion of FDIC currency to bail out the depositors of two government approved banks, there'll be plenty of currency left in FDIC to bail out all the other government approved banks. So, of course the run on the small banks into the government approved banks is going as planned.
...the small banks are in much better shape and the big ones have the most unsecured funds… so why all the hype about small banks? to ease pressure on the criminal banks by lambasting the better managed ones.
...I would be curious as to beta risk between a small bank (insured) vs a MMF (uninsured) is. All to chase yield. Some folks given any consideration to the possibility that a MMF could fail when they enter a withdrawl run??
...Vanguard is the US pension system. Vanguard's assets under management is $8.1 Trillion. Lehman's assets before their collapse were $639 Billion. AIG had about $1 Trillion in assets under management before their collapse. Bear Stearns assets were about 20 billion. So the total assets of the big three players that collapsed in the Great Financial Collapse around 2008, were less than 1/4th of Vanguard's total assets. JP Morgan/Chase has a total asset value today of $3.6 Trillion, so Vanguard is over twice as large as JP Morgan, and JP Morgan is the largest bank in the United States. Vanguard's total asset are almost equal to the four largest banks in the US, which are in order of total assets: JP Morgan/Chase; Bank of America, CitiGroup and Wells Fargo. Vanguard's collapse would be the equivalent of the collapse of the four largest banks in the US.
FedConCoin coming this July, very convenient.