Not sure what others are seeing, but never seen something like this before. Is the company limited though in how many new deposits they can take? It's going to be a strange concept to denying people a new deposit account because of the asset cap. I heard they can change things up on the balance sheet and dump lower cost products, but i don't know.
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SVB was the 16th largest US bank....not a small regional bank. Get your facts.
Funny post, this. Wells has a rich tradition of opening lots of accounts . Why is it a problem now :-)?
Deposits are liabilities not assets. Scares me that you work for a bank and don’t know this. Just shows why we need to thin the herd here.
We have had nonstop closures today. Maybe this all evens out
i hope these comments about increase in liabilities doesn't also increase assets are a joke.......you take in cash (debit in asset) and credit customer's account (liability), you increase both sides of the ledger.......
You accounting geniuses realize that while deposits are liabilities, there's an asset as well, right? Cash? So yes, it's absolutely going to bump us against the asset cap.
Too-Big-To-Fail Banks Flooded With Deposits As Bank Run Drains Small Bank Of Cash
According to Bloomberg, JPMorgan - or as we now call it JPMega - the largest US bank and about to become much, much bigger, alone received billions of dollars in recent days, and Bank of America, Citigroup and Wells Fargo & Co. are also seeing higher-than-usual volume.
you work for a bank, presumably retail, and you don't know deposits are considered a liability and as such not subject to the asset cap?
Right, assets in customer accounts don't go towards the cap.
Deposits aren’t assets, technically they’re liabilities to the bank.
Loans are assets.
Anecdotally, I heard a report that with SVB (the bank) people were moving deposits to larger, more well established banks like WFC.