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E SD | OldMcdonald you have no clue how community and independent banking works. I manage liquidity for a bank. Banks can't borrow themselves out of problems or liquidity issues, there most certainly are limits. Just like a customer there is such a thing as collateral when you borrow from the FED or any other entity. If you don't have assets that can be pledged then you don't get the funds. That is why in 08-09 there were issues. When Banks ran into liquidity issues the FDIC was arranging your bank sale to a suitor with liquidity.
Look up your own institution, I doubt they are anywhere close to 9x loans to deposits. You start running close to 100% Loans/Deposits and if you aren't CAMEL 1 I guarantee you have the FDIC on the phone demanding a liquidity forecast and asking you to provide your model.
Forums provide some interesting talk, but the *&# gets deep sometimes.
Look up your own bank, see for yourself.
https://cdr.ffiec.gov/public/ManageFacsimiles.aspx | |
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Bankers and cattle prices
