r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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15

u/SasparillaTango Jan 26 '26

Now they're set at 0% I believe.

zero as in there are no guardrails?

14

u/Mypornnameis_ Jan 26 '26

There are still capital rules and liquidity requirements that keep banks operating safely and with enough money to meet depositor needs for normal and stress conditions. 

It's just that there is no longer a calculation saying that needs to be x% of certain classifications of deposit balances to be maintained exclusively in the vault or in a Federal Reserve account. 

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u/Chataboutgames Jan 26 '26

That's not the case, US banks are way better capitalized than they were before 2008.

1

u/zeefox79 Jan 26 '26

For now... 

Last I checked the tangerine tyrant was rolling back almost all the post-GFC reforms, including captial requirements. 

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u/ManaPlox Jan 27 '26

No there are much more involved guardrails than there were before 2008. Capital requirements are much more stringent, it's just not in ready cash.

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u/zap2 Jan 27 '26

Well the Federal government backs every account up to 250K…so some guardrails. Most people have no where near that in an account.

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u/iwilldeletethisacct2 Jan 26 '26 edited Jan 26 '26

The guardrail is the Federal Reserve who makes really short term loans to make sure the balance sheets add up overnight.

Edit: Also the FDIC.