FTX held $900M against $9B in obligations - 10%.
that’s well above what the bank reserve requirement of 0%.
wait til normies find out about that SBF had more customer capital on hand than the reserves held by traditional banks.
bank runs could come once they wake up…
liquidity drying up everywhere.
Banks are financial intermediaries. They take the money from the savers and lend it to the borrowers. It’s a shame they fooked it up. And it’s where I work. I’m a private banker. I only work with clients of financial advisors. I love my job. Started working at a bank when I was 18. Worked my way through college. Finally finished when I was 30. Pay was really low. I worked five jobs at one time just to make ends meet. OK I’ll embrace the change. 🙏.
