Professor Gregory Germain provided several media outlets with comments on the recent bank failures and consumer concerns.
At Nasdaq.com and Money, Germain says, “As long as the FDIC is doing their job of assuring that banks are adequately capitalized and properly managed, there is no reason for this mini-panic to have a significant impact on our economy.”
On WRVO FM, he explains the circumstances around SVB’s failure pertained mostly to business accounts that exceeded the FDIC’s $250,000 deposit guarantee. “Because those deposits were not guaranteed and ensured by the F.D.I.C, as soon as there was any whiff of financial problems at the bank, everyone rushed to take their money out and they had a traditional bank run.”