Hacker News Reader

People are taking money out of banks which may be permitted to fail, and putting it into banks that are "too big to fail".

View on HN

Right and they're in turn depositing it back into the small banks.

See: https://www.wsj.com/articles/jpmorgan-morgan-stanley-and-oth...

Yea, they're depositing capital so that the small banks can meet depositor demand.

It's a liquidity infusion. A lot of times the big banks don't want more small depositors anyways.

Yes but as an individual depositor, if you moved money this would not impact your decision. You got the safety you wanted.

SVB is (was?) 16 and First Republic is 14th "largest commercial banks" based on this report (not sure what it is measuring? assets at the Fed?) as per this December 2022 (probably outdated) report: https://www.federalreserve.gov/releases/lbr/current/

And JPMorgan Chase?

The term “too big to fail” is actually well defined. It refers to a Systemically Important Bank, either globally or domestically. See https://en.wikipedia.org/wiki/List_of_systemically_important...

Reply on news.ycombinator.com