Photos on Damus!

JP Morgan, Bank of America, Goldman Sachs, and 8 other large banks have deposited $30 BN at First Republic to seek to stop fourth bank failure this month It’s a pretty incredible move. Wonder if the fed gave any back room commitments that those funds would be guaranteed if there was a collapse

I’ve been watching the Three-Body tv series from Tencent, based on The Three-Body Problem book trilogy. It’s an incredibly faithful adaptation of the books, which I’m enjoying. If you’ve never read Chinese literature, there’s something really unique about SciFi with a perspective that tends to be much less protagonist focused. The funniest thing though, is that I now get YouTube ads in Chinese. Most recently, I even got an ad clearly targeted at Chinese-American parents for a Kumon style online learning to get your kids into a top university. Years of using YouTube, and 10 hours of watching a Chinese show and their algo is totally confused.

I’m seeing a lot about the FedNow launch as it approaches…NACHA RTP has been available for 5 years and was 2.5 bps of the volume of ACH last quarter. Maybe it’s because everyone knows the fed is coming, but it seems like banks aren’t implementing real time settlement with any urgency.

Fractional reserve banking means that no bank can survive a run unless deposits are insignificant to their overall liabilities. Even if all the bank did was mortgage lending, they wouldn’t be able to pay every depositor if they showed up at once because the mortgage is going to take 15-30 years to pay back. Duration mismatch is the fundamental nature of fractional reserve banking.

First ad in Oddlots pod on SVB is “earn 5.1% with the safe, reliable yield on US treasuries”…an episode about a bank collapse in part due to safe reliable treasury investments. Retail doesn’t get access to BTFP if rates keep raising and they need cash before treasuries mature

Dan Davies On What Brought Down Silicon Valley Bank

For those wondering how FDIC works, banks are charged a bps fee based on an assessment of their risk and the size of the institution

FDIC Assessment Rates | FDIC.gov

Current FDIC assessment rates

Go fuck yourself, Mr. In. Charge

If you have less than $1MM in cash, you should have it distributed across 4 banks for FDIC coverage. If you have a lot more than that, probably still just split across 4 banks. Don’t spend your whole life managing esoteric risk, but do the easy things to avoid catastrophic loss.

NY Attorney General has filed suit against Kucoin over sale of illegal securities, including ETH. Goes into detail on the ICO as well as staking as reasons for ETH as an investment contract. https://www.docdroid.net/Myyp0yz/kucoin-pdf

Verifying my Nostr Nests identity: KWYJ7ipXztDbexqujWmcUiFUQPWLPAzvWaa8BmjTfsY

Nostr Nests

Join this audio Space

Finally setup an lnurl and moved back to Testflight version of Damus to play around with Zaps. I know I’m late, but this is really cool