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/biz/ - Business & Finance

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54334766 No.54334766 [Reply] [Original]

>deposit money in bank
>they make loans from it
>withdraw deposit
>repeat
What would happen if lots of people spammed banks like this? would a small number of people making deposits and then withdrawing those deposits very frequently have the same effect as many people trying to withdraw at the same time?

>> No.54334787

>>54334766
>irs chimes in
>ignores all withdrawals just focuses on deposits
>you have three months to pay us back everything you owe or my boss Tyrone will turn you into his bussy slave.

>> No.54334813

>>54334787
i know the irs would be interested to see lots of withdraws and deposits, but once they investigate I wouldn't actually get in any trouble right? Because i could prove to them that its just the same money i keep putting in and out all the time.

>> No.54334838

>>54334813
Banks would just hit your account for fraud after the second deposit and demand to know what you're doing.
>T. former richfaggot.

>> No.54334877

>>54334838
>demand to know what you're doing
I'm just having a bit of fun hehe

>> No.54334921

>>54334838
>former
What happened

>> No.54334933

>>54334921
Chainlink.

>> No.54334977
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54334977

>>54334766

Banks don't make loans with your deposits OP. When a bank makes a loan, they create new bank deposits. We have a 0% reserve system, not a fractional reserve system.

When you deposit cash it the bank, the bank matches that with bank reserves, they can then use those bank reserves to buy Agency MBS and Treasuries. Regular people don't have access to bank reserve. Only banks, the US Treasury and the Federal Reserve have access to bank reserve.

>> No.54336082

>>54334766
The bank doesn't actually hold the loan. They immediately resell them to larger banks . this is where they get packaged into bonds