EPISODE · Mar 31, 2023 · 21 MIN
Episode 59: Citizens Bank won an auction held by the FDIC
from KP Talks Dollars and Sense
There is still a risk called duration risk in finance.It's about not knowing when someone will have to sell their investments and at what price.The Fed thinks they've taken care of it, but we can't be certain.Citizens Bank won an auction held by the FDIC with $120 billion available to cover losses for deposits of $250,000 or less.They bought the assets of Silicon Valley Bank, which means they'll have more branches and services except for the treasury assets.This caused a $20 billion loss to the FDIC Insurance Fund, which means other banks will have to pay fees equivalent to 3% of their profits over the next 5 years to replenish the fund.#KPTalks #DurationRisk #investments #uncertainty #FDIC #FDICfund #CitizensBank #SiliconValleyBank
Embed this episode
What this episode covers
There is still a risk called duration risk in finance. It's about not knowing when someone will have to sell their investments and at what price. The Fed thinks they've taken care of it, but we can't be certain. Citizens Bank won an auction held by the FDIC with $120 billion available to cover losses for deposits of $250,000 or less. They bought the assets of Silicon Valley Bank, which means they'll have more branches and services except for the treasury assets. This caused a $20 billion...
NOW PLAYING
Episode 59: Citizens Bank won an auction held by the FDIC
No transcript for this episode yet
Similar Episodes
No similar episodes found.
Similar Podcasts
No similar podcasts found.