bank runs are just getting started… 🍿
Discussion
I doubt it.
Small industry-specific banks will fail while the large and diversified ones will pick up the business.
This continues a trend of more and more bank assets consolidating towards the top.
I have a couple of larger banking customers and this is 100% what happens. One of mine is so good at doing it, that the govt essentially gives them first right of refusal in purchasing these failed banks because they can integrate and take over quickly.
Wife’s grandfathers is on the board at a small bank. FDIC loves them now because stayed small and makes good loans. Same strategy was gettin true chastised in 2005.
Agreed, it will mirror the centralization of business that happened during COVID. Unfortunately creating less diversification in the industry and more wealth being controlled by fewer big players.
If only there was a way to invert this trend 🧡🙃
Oh great. Further centralization and bigger monopolies
How about Credit Unions? Are they considered small industry-specific players?
This consolidation towards the top is described as a feature for the Federal Reserve cartel in The Creature From Jekyll Island by Edward Griffin. When formed, one of the key tenants of the Fed was to stop the growth of competitive banks. These failures are a part of their cartel plan.