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Political Discussion
Reply to "SVB Bank Run: Fed Calling Emergency Meeting "
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I'm going to ask a question I already know the answer to: Why are banks investing money that was put on deposit into checking accounts? Shouldn't that only be done with money in savings and CDs? [/quote] I am not sure what you are suggesting here. That banks take the money from their depositors and hold it as cash in their vaults?[/quote] For checking accounts, yes. They are meant to be highly liquid and provide miniscule to no interest to depositors. Why is that money invested, and why aren't the gains given to the depositors?[/quote]
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