Welcome to the Eric Erickson Show podcast, Our Three.

Welcome, it is Eric Erickson here. The phone number is 877-97-9374-24-25. If you want to be on the program anywhere nationwide now Jim called into the last

segment and had some phone issues and he is back I want to start with this call Jim welcome sorry

about that well not a problem oh perfect call now. Phone quality sounds good.

Okay, great.

Listen, a very unsettling, I learned an unsettling thing about these bank failures,

like Silicon Valley signature and others.

Medium-sized companies are very vulnerable because they're not big enough to spread their money around, so they have to concentrate it in one or a few banks,

and they're in trouble if the bank goes under.

My question is, is there any way to set up either private insurance

or government insurance to where they're protected

to the way individuals are protected through the FDIC?

Well, so these businesses are protected as well through the FDIC. Well, so these businesses are protected as well through the FDIC, but only up to $250,000

like individuals.

They probably need to consider something like that, although the FDIC and Janet Yellen are essentially

say now they're going to protect all depositors.

Ireland has done this, by the way. Yeah, I know. Ireland, several years in 2009 because of the financial crisis then decided to go to total protection and it requires fees and payments. And

the result is that banking in Ireland has got more expensive because it's not actually a taxpayer subsidy, which I honestly didn't know that until a couple of weeks

ago with Silicon Valley Bank thing. The taxpayers per se do not cover this. The FDIC charges

banks fees like insurance and uses that money. It's based on the values of accounts

and the like up to $250,000. Well, there is spillover effect to the taxpayers if too many banks

fail now because the fees have been set for $250,000. It's going to make banking more expensive

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