#19 Cash Management During A Banking Crisis

Cash Management During A Banking Crisis The hosts, Paul and Garrett, talk about the differences between FDIC and SIPC insurance, common pitfalls to cash management, and some ideas to protect yourself and your cash. They also discuss the history of bank closures and how it is not unusual for banks to close their doors. The hosts then delve into the concept of duration mismatch, which occurs when banks lend money for a longer duration than the deposit made by the customer, leading to a shortage of cash. The history of bank closures in the US and the fact that banks do close on occasion Understanding how banking works today, and the FDIC limits and how they work Discussion on what happened to Silicon Valley Bank and how they got into trouble Mismatched duration in borrowing and lending, and its effects on banks