week 5 assignment 2
Storyboard Text
- SILICON VALLEY BANK
- "Hi, I'm Nathan.I represent ROKU, as a company we have $487 million here
- Hey Nat! That's nothing, Circle co holds $3.3 billion here
- "Hello Sir, I would like to deposit some more money in my business account..
- Lucky us! I am working at one of the largest banks in the US based on deposits. We are going to buy so much more assets by using these deposits. We can do whatever we want with these deposits because US banking system changed to NO RESERVE Banking in 2020!!
- Sir, the pandemic is here! The demand for loans dropped, we bought assets with client deposits, clients started withdrawing deposits. I'm afraid we won't be able to handle a large influx of withdrawals.
- OMG! A bank run is about to happen! How did we not think about that?!
- ..Three Days Later
- I just talked with Nathan, This week, $42 billion in deposits left the bank. This will lead to collapse of our bank.
- Calm down everyone! Client bank deposits at US Banks are covered by Federal Deposit Insurance Corporation!! Let's look how many clients have less than $250,000
- I can't reach out to CEO. I was told that he was flying to his mansion in Hawaii.. How did this happen to us? What did we do wrong?
- Well, Your bank received large deposits between 2020-2021, and bought assets using all of it. Interest rates increased and effected asset markets in a bug time. So the assets you all bought with client money lost its value.
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- We want our money!
- CLOSED
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