The Largest Bank Failure Since 2008 | Weekly Round Up
Inflection Point
00:00
Is Your Money in the Bank?
When you put your dollars into a bank, what the bank then does is they've got two options at a very high level here. They go around and they need to generate yield on that. What they also have, so that's on the asset side of their balance sheet, they've got deposits. So it's the money that you gave them. You could come back at any time and ask for that money back. That's usually fine, but they also have a bunch of money tied up in their loans and securities, right? Those portfolio bonds that they bought or the loans that they made. So they can't really give that back immediately. And this is why the deposits are read
Play episode from 05:08
Transcript
