6 Burst results for "Ten Different Banks"
What Bitcoin Did
"ten different banks" Discussed on What Bitcoin Did
"Well, listen, it's a new lens for me this last couple of days, Caitlin, because in the UK, we have something similar to the FDIC and our bank deposits are covered up to about 80,000 pounds. I never have 80,000 pounds in the bank. Why would you? It's melting away. And I never do. But in Bitcoin, you put in housing, you put it in gold, you put it in whatever anything else which can either that appreciates in a value or can only some kind of interest. But I don't have that. But in terms of my business, I do, because I have 7 full-time employees and you know how cash flow works, I've always got to be three, four, 5 months in advance. Yes, I've now just seen a situation where there is a run on a bank and there are people owners of businesses who are saying, I'm not sure I can make payroll this week. Correct. That is a situation that could affect me. Yeah, if they had run on my bank course, I could be in a situation where I can't make payroll. And now I'm like, wow, do I need to have, I don't know, ten corporate accounts, each with up to 80,000 pounds who I need to do that? Yes. Is that what I need to do? Yeah, so there are a lot of people. I'm sympathetic. The CEO who's interview I heard this morning, the $25 million BioTech corporate cash sitting sitting uninsured in Silicon Valley's account 250,000 of the 25 million in his case was ensured that's it. Here's the thing. Whoever runs finances at that company should have been paying attention to this. I spent a lot of time with the corporate treasurers when I was working at Morgan Stanley, working with corporate treasurers. Understanding the pain points of corporate treasury, big companies, General Motors, General Electric has 10,000 bank accounts around the world. They probably have a thousand people in their corporate treasury staff whose job it is to reconcile all those things to move the cash around, but here's the thing. Those treasury analysts are also understanding the counterparty risk of their banks because they understand that only $250,000 of their bank deposit is insured. Now, one of the interesting questions is, should that CEO of the BioTech company have had his finance person analyzing the counterparty credit risk of Silicon Valley bank? Yes. So when he said, oh, that money is mine. That's a way it should be, but that's not the way it is. He should have had his finance person analyzing that. One big lesson for every business yourself as a small business owner all the way up to the GEs of the world that have 10,000 accounts. Everybody needs to understand your bank. You're lending money to your bank and your bank might default on you. And you need to understand the impact of that. So what does it mean? Should you go get ten different bank accounts?
The Trish Regan Show
"ten different banks" Discussed on The Trish Regan Show
"And that is a problem. Anyway, joining me right now with a look at what it means for small business in America. I'm so happy to welcome to the program. The head of the job opportunity network, none other than mister Alfredo Ortiz. Alfredo welcome. Trey, thank you very much for having me. Always a pleasure. So there's lots to go through, but I want to start front and center on this whole banking crisis that people are worried is going to become a kind of contagion. Today, thanks for the quick action of my administration over the past few days. America's going to have confidence that the banking system is safe. Your deposits will be there when you need them. Small businesses across the country, the deposit accounts that these banks can breathe easier, knowing they'll be able to pay their workers and pay their bills. I mean, do the right thing by coming in at the 11th hour for the bailout? Yes, so this is always a tricky one as conservatives we never really like government bailouts per se, but first and foremost, this is actually an industry bailout because they are Tapping into their own funds that were created after the last banking meltdown so about a $100 billion fund that the Tapping into. So from that perspective, it is an industry fund that they're using. But we always worry about moral hazard basically fancy words for basically saying rewarding people for making really stupid things. By the way, I should just jump in because you're an economist by background. I want to let the viewers know that Alfredo is an economist by background and has a lot of experience in the financial world as well as marketing. Moral hazard is an economic phrase of fancy one. It really just basically means, you know, you start rewarding people for making dumb mistakes. The reality is from a marketing social behavior perspective, contagious are real, right? I mean, everybody's probably seen it's a wonderful life. If you remember the run on the bank, I mean, one person said, hey, you know, I didn't get my $2 that I wanted and everybody started spraying the rumor that the bank was going to run out of money. And so there you go. You have a good old fashioned run on the bank and I think that's exactly what happened with SVB. And could have happened with other banks as well. You're already starting to see deposits being pulled out of smaller regional banks and going into Bank of America. That's right. Because if you're a business, if you're a small business owner, you probably do have a decent amount of working capital on hand. You've got to meet payroll. Do you really want to work with ten different banks? When you look at the industry as a whole, uninsured deposits on average only represent about 10% overall across deposits across all these different banks. At Silicon Valley bank, that was actually the exact opposite. 90% of the deposits were not insured, which means that these weren't small mom and pop companies that were literally banking at SVB. This was Pinterest. I think Etsy, we're talking some pretty sizable tech companies that were operating within that. Probably I should have known better, right? Yeah, they should have. This to me was really first of all. Bad, bad bank management. I mean, they bought long paper in an environment of rise in interest rates, which does that. I mean, look, you know, your average Joe probably realizes that you can't buy something that's a ten year note making two and a half percent. We have rising interest rates of four and a half. But look, they had an open position of chief risk officer for 9 months. But yeah, he did have a head of DEI. They had a DEI officer. So it was really great that diversity. Yeah, you got to make sure that you fit the woke agenda. You got to hit all the ESG boxes. Exactly. And I'm sorry, but I think the whole thing is just such a sham benefiting the likes of Larry Fink and BlackRock because he's come up with this idea that it somehow is smart. I'm trying to see if we have some signs. Behaviors are going to have to change. And this is one thing we're asking companies. You have to force behaviors at BlackRock. We are forcing behaviors. Markets don't like uncertainty. Markets like actually totalitarian governments where you have an understanding of what's out there and obviously the whole dimension is changing. Found I can play. Who the heck prefers a totalitarian? I'm sorry, maybe you do, Larry. That's good for you. Yeah, it's unbelievable. It's catching up with them. People are realizing that, you know what? Profits matter. Accountability matters. You actually have to focus on making money, not whether or not you have enough transgenders on your board. That's not true. You have a lot of states that are just basically saying we're not we're just not going to operate our pension funds in that kind of environment. You're not focused on shareholder output and shareholder value. We're just going to not make Ron DeSantis in Florida. You've seen Kansas do this Texas. It is wonderful to see because that's what it's going to take. It's going to take people saying, you know what? This is not for me. Let me find an investment manager and asset manager that actually cares about making sure I have money when I retire as opposed to satisfying some liberal agenda. I'm sorry, money. And the growth of one's wealth should not be rooted in these social issues. I mean, unless you want to just give up and become a communist. Absolutely. And if I may, you know, I want to point out, too, this is also happening in our many of our public companies. What happened at Disney the CEO got fired and they brought back eiger primary mission for Disney is to entertain families not to indoctrinate kids. I love that it's catching up with the market. I don't like to see stock valuations go down, obviously, ever. Publicly held companies. It's making money for your shareholders..
The Trish Regan Show
"ten different banks" Discussed on The Trish Regan Show
"Hi, welcome back. Everything's moving at a very, very rapid pace right now. But bottom line, the feds are saying, okay, you know what? We're going to guarantee deposits at any of these banks by opening this window, do you think that's the right move? Well, I think we absolutely needed it. The fed absolutely had to back in and ensure otherwise you're going to see a much larger problem with small business across the United States. We've got maximum $250,000 that the fed's going to ensure. I was talking to another business owner in Dallas where I am yesterday. And I mean, there are small business $5 million a year in revenue. So they're not going to, they're not going to lay that out across ten different banks and the deposits that they have in order to fit within the shared mandate. And it's too much red tape. Exactly. So they did what they had to do. But now everybody still freaking out. Even though the fed says, don't worry, you know, we're going to be here. We'll loan them whatever money. This fear factor, right? This is what's so dangerous in markets because once the fear factor starts, there are worries about contagion, are you concerned that we could see multiple bank failures in 2023? No doubt that there's going to be bigger problems. I don't know that we'll see multiple bank failures, but we're going to definitely see faculties across a number of regional banks. There's a lot of consumer spending going on. Great jobs market and all of a sudden you start to see the effects of rising interest rates and the difficulty to get and obtain cash and money and yet we're still spending. We would have increased interest rates all at one time or maybe over a two time period to get to a point that would affect inflation. It would have been much better than seeing what the lingering effects of a slow increase in an interest rate. Yeah, you and I are on the same page on that one. I mean, I can't believe what they did. And I am disgusted with our Federal Reserve and frankly disgusted with our members of Congress, specifically folks in the Biden administration, the Democrats that pushed through all of this spending $1.2 trillion in infrastructure that we know wasn't really infrastructure. Inflation reduction acts, which just created more inflation. And today we learned that CPI and consumer prices consumer price index came in at 6% instead of the 6.4%. So people are like, woohoo, it's coming down, but it's still 6% higher than it was. We have a major inflation situation. However, fed can't come in and really do much right now because you got a banking crisis. Instead of saying, let's back off all this money printing, they continued it, and they continued it in the continued it. And they allowed it to go on all while simultaneously. The Biden administration put even more money into the system. And that's what boggles my mind and really angers me tie. It is such a mess out there. I mean, really, an investors are scared. I do believe, as you said, the economy is on stronger footing than maybe some of the bank headlines would lead you to believe how should investors think about diversification and okay, shameless plug, because you're one of our sponsors and you have a real estate portfolio..
The Indicator from Planet Money
The Birth Of The Greenback
"Stacey next. Jacob Feldstein. Planet money author of money the true story of amid up during a new book. Say I. brought props for us to do the indicator. I say. That's been months. It's been. That guy's been honking hall eight months. I have props came over so I could give you these troughs. Okay. Go ahead and look at them. All right. Okay. So, this is like a really high quality xerox of an old piece of money. THREE DOLLAR BILL RE dollar bill that's really a real thing. There's like a a lady standing next to in like a ball gown standing next to a cow to I chose a cow to pander to you I do love a cow keep going. Okay. The Orange Bank It's orange because this from the orange. Bank and this is a one dollar bill. So Stacey, these are reproductions of real paper money that was printed by private banks in the United States in the eighteen forties and fifties. This is one of the most interesting periods I found in the history of money when I was working on my book, it's this moment when the United States government did not print money, there was in fact, no single national paper currency but if you wanted to. Open Up Stacey's Bank of New York and print your own paper money. You could. I don't know if I would trust that dollar from that. Was a real problem that was a real problem we'll get to that. I. Mean they were just so many different kinds of money at one point the Chicago Tribune counted eight, thousand, three, hundred, and seventy different kinds of paper money in America. This sounds very confusing for everyone involved this indicator from planet money. I'm Stacey Vanik Smith and Jacob. Goldstein can we make eight, thousand, three, hundred and seventy, the indicator? Yes. Today on the show. How can you even have that many kinds of money and also just what does it tell us about money works? Let's just go. Let's just go a block away to get away from the horn. Yeah. Support for NPR and the following message come from fund. fundraise fund makes it easy for anyone to invest in high quality real estate by building you a portfolio with their more than one billion dollars in assets get started at fundraise dot com slash indicator to have your first ninety days of advisory fees. Waived. This message comes from NPR sponsor. Microsoft teams. Now, there are more ways to be a team with Microsoft teams bring everyone together in a virtual room collaborate live on the same page and see up to forty nine people onscreen learn more at Microsoft Dot com slash teams. So can we should set the scene here Jacob the nineteenth century America lots of is apparently also this was the era when gold and silver were money and Jacob say in the book that the government minted gold and silver coins, but it did not make paper money at that time. The exactly right. So the only paper money in America was printed by all of these different. Private banks people called paper money in fact banknotes, right. So they thought of it as like a piece of paper from a bank and they thought of paper money in particular as like a receipt or a coach ticket as as a thing that you could substitute for gold and silver, and in fact, if you look at at the bills I gave you all have this kind of. Writing like just grab a different one for fun. So we can say what it looks like. Okay. This is the stoning ten bank, a two dollar bill. There's a way. Moby Dick or something Wail Bell we've cow Bill Wail Bill So okay. So now look at the cursive writing see the cursive they're just blowers is stoning to. Two dollars to the bear on demand right and if you look all these different bills are different colors, they have different pictures on them, but they all say that will pay how ever many dollars to the on demand and so the second interest. Yeah it's an Iou because the interesting thing is it's telling you the paper money is not the real money. Right? They're saying we will give you two dollars in gold and silver for this paper money right? So the real money in this world is the underlying gold or silver the paper is just like. The Standard. So this is a time in history when there's not federal bank, there's not a national bank. There's like thousands of of little local banks and I guess all these banks can issue their own money. That's right and it's kind of evolving in this period at the beginning of this ehre the eighteen thirties. If you wanted to open a bank, typically you had to go to your state legislature and get special approval. Basically, they had to pass a special law that would let you open your bank and this was problematic because I was super corrupt essentially. Bank and print money. Then you're gonNA bribe whoever you have to. Say all the knee. All due respect to get them to let you open your bank. Right. So around eighteen forty, a little earlier, this new idea became popular. The new idea was called free banking. And the idea of free banking was anybody who is willing to follow a few basic rules could. Take and start printing money and literally start printing money and you know not surprisingly a lot of people wanted to print money. This is how we get eight thousand different kinds of money. Yes. How do you know if the bill that someone's handing you is real money or if it's literally just a piece of paper from the First Bank of Stacey Vanik Smith which might be real money. I wouldn't. Maybe. Add bribed senator so I love this so there arose in response to this problem these special periodicals Magazines that were privately published called banknote reporters. And what they were was these lists in tiny font of every kind of money. So I actually have a reproduction here another prop from a page. This one was called. Thomson's Bank note. Reporter. K.. So the people who subscribe to this merchants people who need to accept money. So so let's just say I'm running a bar and I got my thompsons bank note reporter and I come in I need a drink who thirsty I'm thirsty. So okay. So the page of the bank note reporter I printed out is for Orange Bank. Okay. Okay. So have that bill right here it is and it's a one dollar bill. So I find Orange Bank here in my Bengal reporter and it says Okay Orange Bank listed different bills and says ones and under wants it describes what the bill is supposed to look like says to horses check. Hey, Cart Jack Blacksmith shop male portrait Jack Girl. Check. So it's at least plausibly real. The reporter also tells me something else that's important and that explains a lot about how many works at this time. Typically would tell me whether I should accept that paper money at full face vowed I can buy my dollar whiskey with this whether you can get your dollar whiskey because remember what we care about is whether I can turn in that paper money for gold or silver, and so if the bank is shaky or even if it's just really far away. You know the reporter might say, just knock five cents off the dollar give Stacey Ninety five cents worth of whiskey instead of a dollar that took a really long time to buy that we ski. It does seem like it would have been absurdly inconvenient right and for a long time when people look back at this period, the basic story of free banking was just that was a horrible idea like that many kinds of money right but. Much, later, like in the nineteen seventies. This generation of economic historians started going back and looking more closely. At the banks and how money works in this period and what they saw when they really went through the numbers was basically like it wasn't that bad Bankston go bus that often people didn't usually lose much money when they used. We're you overall they would lose like a few percent which is. Kind of like what you pay today. So when you take money out of the weird off Brand ATM at. The corner store. which I always do. Yeah, I. Mean. That's basically like the the bartenders giving you ninety cents for your dollar when you do that, right? So. Obviously, we do not have eight thousand different kinds of money now this ended and it ended after the civil war. Yeah was the civil war. So during the civil war, that old American argument of can we have national banks or not came up again and Congress passed a few important banking laws. One of them basically taxed all those thousands of kind of state banknotes out of existence, and then the other one created these new national banks that printed much more reliable, much more uniform paper money. It's interesting because I mean, this was obviously after the civil war was the time when the United States went from like a collection of. To One Country, and it seems like the same thing happened with currency maybe not a coincidence. Your I mean, there is this idea at least in the modern world money is part of what makes a country a country and I think you do see that happening at this moment in the united. States when we go from thousands of kinds of money toward one uniform kind of paper money I'm just sad we lost the cow bills. Because you know Jacob I have a fever and the cure. This story in like a whole bunch of other like believable stories like this are in your new book money. The true story of a made up thing. This episode of the indicator was produced by Nick. Fountain fact check by Britney Cronin, the indicators edited by Patty hearst and is a production
Safe Retirement Solutions
Los Angeles and Other Cities Stash Money to Prepare for a Recession
"But it's always best to be prepared and socks on money away. Socks the money will. Yep. So yeah, you're in the boy scouts boy. Scouts. We. I love boy scouts. Yeah. What was what was our motto? Be prepared be prepared. Another interesting article from the Walsh, the recent Wall Street Journal scanning grandma, financial abuse of seniors hit record numbers US banks reported that over twenty four thousand suspected cases of elder financial abuse to the treasury department. The treasury department by the way is making their prompting banks to become more active in addressing frauds and scams that target older customers. Another thing talking about banks. Too big to fail. Ten banks now owned seventy seven percent of all US banking assets. Back in two thousand eight we were told we had to bail these big banks out because it was necessary to step for the federal government to step in and bail them out because they were they did a terrible job with their money. Of course, they want your money to put in the bag. Seventy seven percent of all banking assets in ten thanks back in two thousand eight the ten biggest banks do control fifty five percent of US assets. But now it's at seventy seven percent, unfortunately, the giant banks colossal mountains of debt risk and leverage incredibly unstable. And what's going to happen when when we have to bail them out again? So we increase their network their assets by twenty two percent by Vail daily them out. They're bigger than ever. And it's getting scary. If he asked me they control seventy seven percent. Hey, we gotta take a break. And but I want to pick this back up
FT News
Danske whistleblower says big European bank handled $150 billion in payments
"Scale and scope of the Danske Bank, money laundering scandal. We open with a clip from whistleblower. Howard wilkinson. Not to spend too much time on this chart, but you can see this ten banks ten banks there. I think how many countries are. We got Russia. This you Ania Estonia, Denmark, US, we've got European subsidiaries is a lot of countries involved. And in the case of this Danske Bank, money laundering, scandal, they all failed. It's not just stonier and not just their Mark. Every single one of those banks had an obligation to check the money that was going through them and every single one of them failed. Think is important to remember that we're not just talking about thirty money going through Danske Estonia thera to other Danske units in vote Lithuania and Denmark, and I think very important is to look on the foreign no one really knows where any of this money went all we know is that the last people to see it with these three banks in the US there. The last the last check. And when that failed the money was into the global financial system. It was clean. It was free. Howard Wilkinson the whistle blower at the heart of the Danske Bank scandal has been giving evidence to the Danish parliament. And it's rather blowing the lid open on this whole thing. A couple of very big revelations, Richard tell us exactly what struck you. Well. Well, it was an extremely interesting performance from him. He was the whistle blower who warned in four occasions on twenty thirteen in two thousand fourteen than Bank, and what he said in parliament east really taken aim at just about everybody involved in the phase being breaking critical of Danske, Bank and its management. He's taken a big short. Danish regulators. But I think the biggest headline rarely is the he looked at the three correspondent banks that helped and skirt process the money out of it sustained in branch, and in