Chapter
The Risk of Banks Turning Deposits Into Venture Capital
56:24 - 1:00:32 (04:07)
There is a risk of banks turning deposits into venture capital and investing in high-risk startups which could cause a cascade and lead everyone to put their money in big banks.
Clips
The use of customer deposits for non-liquid and high-risk investments does not make sense, as it is not a source of capital where anyone expects to lose money.
56:24 - 57:35 (01:10)
Summary
The use of customer deposits for non-liquid and high-risk investments does not make sense, as it is not a source of capital where anyone expects to lose money. Moreover, the aggregate amount of dollars in these bank accounts equals only 10-20 percent of the value of startups they represent.
ChapterThe Risk of Banks Turning Deposits Into Venture Capital
EpisodeE119: Silicon Valley Bank implodes: startup extinction event, contagion risk, culpability, and more
PodcastAll-In with Chamath, Jason, Sacks & Friedberg
When you deposit your money into a FDIC insured bank account, you expect the bank to keep your money safe, but in reality, the bank may actually be putting your money at risk without your knowledge.
57:35 - 1:00:32 (02:57)
Summary
When you deposit your money into a FDIC insured bank account, you expect the bank to keep your money safe, but in reality, the bank may actually be putting your money at risk without your knowledge. This lack of security may have severe consequences for both customers and banks alike.