Billionaire investor Nelson Peltz says money flying out of banks is dangerous. Here's his idea for the Fed that he says will stop more bank runs

"A "very dangerous situation" has been building with customers yanking money from smaller banks and pushing it into just a few of country's largest banks, co-founding partner of Trian Fund Management, (Nelson Peltz), told CNBC on Monday.

He appeared after a bank run at SVB, a key lender to tech startups, earlier this month triggered deposit outflows at other regional banks.

Peltz said the deposit insurance program should be expanded by having customers at all banks pay insurance premiums to the Federal Reserve only if they want their accounts covered beyond the FDIC's typical insurance limit of $250,000. "

"After SVB collapsed, the FDIC, the Treasury Department and the Federal Reserve protected all accounts that spilled over the $250,000 insurance limit. Roughly 89% of SVB's $175 billion in deposits were uninsured at the end of last year. "

SOURCE:

https://markets.businessinsider.com/news/stocks/svb-nelson-peltz-bank-crisis-fdic-insurance-coverage-fed-trian-2023-3

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