Bank of America, JP Morgan, This Is Not Like Silicon Valley Bank

Killem: Banks that are subject to Basel III have to manage their liquidity and do have to hedge their interest rate risk. He says the community banks, which is where a lot of credit creation in the US economy does take place, don't have those requirements. Killem: There's a duration mismatch in this information age in which information moves at the speed of light. And if you look at the balance sheets of the banks, virtually none of them are sitting on enough cash to back demand deposits," he said.

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