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Gary Zimmerman, MaxMyInterest - SVB, FDIC, & Improving ROI on Cash | #471

The Meb Faber Show - Better Investing

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How Do I Manage My Balance Sheet?

Banks make money in part by borrowing short term and lending long term. They'll lend to a 30 year mortgage, but your deposits with the bank, you can withdraw any day you want. A lot of banks have this problem now where they built up this portfolio of treasuries securities that are underwater. And if they're forced to liquidate them on short notice, they're going to take a loss.

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