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https://www.wsj.com/articles/bank-runs-trash-long-held-assumption-on-deposits-474afcc5

Bank Runs Trash Long-Held Assumption on Deposits

Regulators and lenders valued customer accounts higher when rates rose

By Jonathan Weil
 and Peter Rudegeair
The Federal Deposit Insurance Corp. is doing what it was designed to do when banks such as Silicon Valley and Signature Banks go under: cover insured deposits. Here’s how the FDIC works and why it was created. Photo illustration: Madeline Marshall

The recent spate of bank failures is upending a long-held theory among banking executives and regulators—that the value of a lender’s deposit business goes up when interest rates move higher.

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Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved.

Copyright ©2023 Dow Jones & Company, Inc. All Rights Reserved

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.