from Balaji | by Balaji

The message the market has received is: deposits are unsafe unless they are in a too-big-to-fail bank. Small banks get piddly FDIC insurance. Big banks get the full backstop of the US government, because they're systemically important. Bail out the big, submerge the small. t.co/jvEUoGWeBs

Of course, becoming a too-big-to-fail bank comes with strings. It means you are de facto nationalized. The Chinese call them state-owned enterprises, the Americans call them systemically important financial institutions. t.co/BniRUVnvno t.co/qv67GwKfvW