USA: The financial meltdown is beginning.
A court dispute has ensnared potentially millions of Americans, leaving them without access to their money for nearly two weeks.
They are keeping this quiet, but this affects 2.9% of US bank customers.
o.O so it's not a bank that has failed, rather a banking middleman who provides Banking as a Service (BaaS)
Look, if silicon valley bank collapse didn't trigger a meltdown then this wont either.
Silicon Valley Bank was bailed out entirely by the FDIC. And so there were no liquidity issues. 2.9% of real people have been able to not access their money this time. That did not occur last time.
It's not "the beginning of a meltdown" because everybody still owns all their money and no bank is failing. There's a customer service issue for users of a non-bank service. That is part of the risk you take when you're putting money in a non-bank.
It sucks for the users obviously but like where would a contagion even begin? This is already the largest BaaS middleman. This is as big as this issue gets.
This may be as big as this particular issue gets, sure. But we had bank failures last year, which resulted in nobody losing access to their money for any period of time. Then this year, we've had 3% of people lose access to their money for two weeks. What will it be next? From what I understand there are 61 or 63 banks on the FDIC's list of problem banks which is a very good indication that they are likely to fail.