Lasry on the Risks of Keeping Money in Smaller Banks

The video discusses financial strategies, focusing on whether to move money from smaller banks to larger ones like JPMorgan or Bank of America due to systemic risk concerns. It highlights the importance of trust and confidence in banking systems, especially for businesses with large deposits. The discussion also covers the potential instability of regional banks if the Federal Reserve does not provide guarantees, leading to deposit flights. The video concludes with predictions on deposit trends and the necessity of Fed intervention to stabilize the banking system.

In what scenarios might a business decide to move its capital out of a small bank?

What indicators might suggest that the Federal Reserve has successfully restored confidence in the banking system?