Banking System Update – Implications for Investors
March 13, 2023
- We realize that recent headlines over bank failures have been very unsettling.
- Despite the chaos in the media, we are not concerned about the health of the banking system from a depositor perspective.
- The Federal Reserve has stated that they will make available funding to all banks to ensure they are able to meet the withdrawal needs of all their depositors.
- Large brokerage firms have been provided with ample resources under a newly created government funding program to meet all the liquidity needs of their customers.
- These Federal programs make it unnecessary to move money or assets from your bank or brokerage account.
- We are comfortable with our individual equity positions in large well-run banks in our stock portfolios, however, poorly capitalized banks may be at risk.