Paul Clark quoted in Forbes article, “Some Like It Hot: Can A Financial “Cancer” From The 1980s Help Prevent Bank Runs?”
May 31, 2023
Seward & Kissel senior counsel Paul Clark was featured in the recent Forbes article titled, “Some Like It Hot: Can A Financial “Cancer” From The 1980s Help Prevent Bank Runs?”
The article addresses the stigma that the FDIC has placed on the use of brokered deposits, particularly brokered CDs, by banks and questions the current policies. As Clark notes in the article, Silicon Valley Bank had no brokered deposits and was fully funded by so-called “core” deposits, largely transaction accounts. Unlike core deposits, brokered CDs cannot run as there is limited early withdrawal. Former FDIC Chair McWilliams also questions the concept of core deposits. Examples of healthy banks that rely on brokered deposits are noted in the article.
To view the article on the Forbes site, please click here. Please note, a subscription may be required to view the full article.
If you have any questions, please contact Paul Clark.
Related Attorneys
Paul T. Clark
(202) 737-8833
clark@sewkis.com