Instead, the central bank along with the Federal Deposit Insurance Corporation and the Treasury Department, have the power to guarantee deposits bank by bank if they find a systemic emergency. “But there is a tail risk in that lack of absolute certainty.”Experts say in the wake of the bank collapses not to rush to withdraw money. “Do we want to make it the duty of depositors to do that kind of forensic accounting analysis on banks?” Blankfein said. If it’s certified, we get on them.”The difference between 2008 and now is the difference in assets, Blankfein said. If the current model of banking stays in place, most Americans will think their money is only safe in too-big-to-fail banks, Blankfein said.

Source: CNN March 19, 2023 16:19 UTC