Banking System Update – Implications for Investors

  • 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.

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