Article Image
IPFS News Link • Central Banks/Banking

Bank Runs Trash Long-Held Assumption on Deposits

• The Wall Street Journal

The recent spate of bank failures is upending a long-held theory among banking executives and regulators—that the value of a lender's deposit business goes up when interest rates move higher.

The Federal Deposit Insurance Corp. is doing what it was designed to do when banks such as Silicon Valley and Signature Banks go under: cover insured deposits. Here's how the FDIC works and why it was created.

Read more on WSJ