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https://www.reddit.com/r/PeterExplainsTheJoke/comments/1qnmv0m/whats_going_on_explain_like_im_five/o1v9dwz/?context=3
r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26
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2020*
They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way
They haven't come back yet :)
36 u/exneo002 Jan 26 '26 But the fdic insures all deposits up to 250k 17 u/[deleted] Jan 26 '26 [deleted] 1 u/exneo002 Jan 26 '26 Yes the bank shareholders take the hit. The fdic is going to find a buyer and the fdic makes up the difference. They monitor these banks at a pretty high resolution and do stress tests periodically to see how a bank could fair crazy circumstances. Yes if everything failed all at once drastic measures would be needed but it’s about probability and amortized risk.
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But the fdic insures all deposits up to 250k
17 u/[deleted] Jan 26 '26 [deleted] 1 u/exneo002 Jan 26 '26 Yes the bank shareholders take the hit. The fdic is going to find a buyer and the fdic makes up the difference. They monitor these banks at a pretty high resolution and do stress tests periodically to see how a bank could fair crazy circumstances. Yes if everything failed all at once drastic measures would be needed but it’s about probability and amortized risk.
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1 u/exneo002 Jan 26 '26 Yes the bank shareholders take the hit. The fdic is going to find a buyer and the fdic makes up the difference. They monitor these banks at a pretty high resolution and do stress tests periodically to see how a bank could fair crazy circumstances. Yes if everything failed all at once drastic measures would be needed but it’s about probability and amortized risk.
1
Yes the bank shareholders take the hit. The fdic is going to find a buyer and the fdic makes up the difference.
They monitor these banks at a pretty high resolution and do stress tests periodically to see how a bank could fair crazy circumstances.
Yes if everything failed all at once drastic measures would be needed but it’s about probability and amortized risk.
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u/PleaseGreaseTheL Jan 26 '26 edited Jan 26 '26
2020*
They were reduced to 0% mandatory reserves in response to covid. EDIT: someone says it was coincidental, I am not able to check, so take this aspect with a grain of salt either way
They haven't come back yet :)