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Pod 20: March FOMC, Banking Collapses, Jerome Powell, 25 bps, and the Fed Navigating Sticky Inflation

Unusual Whales

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Do You Have a Diversified Deposit Base?

A bank has basically, as we all know, they borrow short and then long. They have a lot of deposit liabilities. And deposit liabilities can be withdrawn at any time. So for a bank to want to avoid having a panic, you want to have a deposit base that's largely insured deposits. This way, the depositors don't panic and you don't have this kind of a run.

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