On Saturday, a line formed outside First Republic Bank in Southern California as depositors fearing its collapse lined up to withdraw their money. What is funny is the deposits of most of these consumers are probably protected by the FDIC rules if the bank were to close. As I posted earlier, the problem arises when companies move millions of dollars via wire transfers not consumers withdrawing thousands. These lines, however, are an example of an old fashioned bank run.
The story also reports how thousands of wineries were “locked out” of their bank accounts after SVB closed on Friday. While known for their relationship with tech companies, they were also the lender of choice for many wineries.
Regardless of where you bank, make sure you have some cash on hand.
Published March 11, 2023. View full article.
