perma Brew doomster said:
cryption said:
I responded in your thread as well - but this is my uninformed take
I'm suspecting something like JP Morgan will weather the coming storm. Govt considers them too big to fail, lots of wealthy people have their money with them, and they'll end up buying local / regional banks that fail. I can see this whole banking thing causing a consolidation of banking to a few of the biggest players - and I reckon JP is one of them. The rich wont let their friends fail.
very solid take and I agree. thanks for posting!
sorry for the slight derail all.
In 2 years (or less), there will be dozens of threads about how pitiful the customer service is at JPM, Bank of America, Wells, etc. Moving to one of the mega banks because you're scared isn't always the best option.
Each persons financial situation is unique, so answering the question isn't as simple as you would hope. Over the last few weeks, everyone is looking at unrealized losses as the worst thing in the world. In a few months it will be CRE exposure. Then it'll be energy. Then credit cards or mortgages. That's the exciting thing about banking. You live on super low margins and could get taken down by dozens of different issues.
If you are below the FDIC limit, you should focus on customer service, convenience, and product offering. SVB failed on Friday and the customers had access to their deposits on Monday. It's not like the 80's where everything was manual and you had to wait in line. If you have a CC and/or a small secondary bank (or cash) you'll be fine for a 1 - 2 day delay.
The bigger banks have more branches, prettier websites, a few more products-but they will nickel and dime you with fees and pay nothing for savings. (Individual employees are good - but they have no authority to do anything significant to help clients)
The small banks will be friendly but not fancy. They'll pay you fairly for your deposits and be thankful for your business. The people you meet at the bank will have the ability to help you (or easy access to decision makers who can).
Now - if you're rich, you have more decisions to make and more options. You can use ICS to spread your deposits but still support your bank. You can go to a bigger bank which adds safety to your deposits, but you may not be important enough to get the loan structure you want.
If you're talking from an investment strategy, investing in the super conservative bank is safe and will provide a dividend but minimal growth. Investing in an aggressive bank will provide growth, but risk.
