Traditional "Brick & Mortar"
What is a "traditional" bank?
A financial institution that operates physical branch locations.
What kind of support do mobile banks offer?
Costumer service chats on phone or AI support. (No face to face)
Is money in a credit union protected if the institution closes?
Yes. It is protected up to $250,000 per individual depositor.
What does the Clarity act do?
A comprehensive federal regulatory framework to divide oversight of crypto currencies.
what federal organization protects eligible deposits and up to how much do they give to the depositor
FDIC, $250,000
This is the amount of monthly fees needed to use online-only banks.
What is little to none?
Who actually owns a credit union?
The members
What is the primary objective of the proposed U.S. clarity act regarding digital assets?
To establish clear judicial boundaries between the SEC and the CFTC for regulating cryptocurrencies.
Why might traditional banks have higher operating costs than online-only banks?
Traditional banks have to pay for physical branches, utilities, and in-person employees
What are some benefits to using mobile banks?
FDIC covered up to 250,000, fees lower, 24 hour access and instant money transfers.
What is a credit union?
Unlike traditional for-profit banks, these non-profit institutions are owned and managed entirely by their members
what major U.S legislative bill proposed dividing crypto oversight between the SEC and the CFTC to classify digital assets as securities or commodities
The clarity act
How did the Archegos meltdown, where a big investment firm that wasn't a regular bank borrowed a huge amount of money to make risky bets, end up causing problems for the traditional banks and reveal hidden dangers for the entire financial system?
Caused billions in losses for major banks and exposed how hidden risks in less regulated parts of the financial system can threaten traditional banking.
what are 2 advantages of using traditional banks
face-to-face service, access to physical branches, wide selection of services, etc.
This type of bank is better for deposits than loans because of its high interest rate.
What are online-only banks?
Traditional banks are backed by the FDIC, while credit unions are backed by ___ for up to ___$
NCUA (National Credit Union Administration), 250k
This federal agency primarily oversees commodities markets and would gain a clearer role in regulating digital commodities under the Clarity Act.
What is the CFTC (Commodity Futures Trading Commission)?
Name all 4 banks that failed during the 2023 Bank Failures
First Republic Bank
Silicon Valley Bank
Signature Bank
Credit Suisse