AFBF Economist & Risk Asset Manager touch on the state of the banking system
It has been one week since we watched a powerful bank to the start-ups collapse. The Federal Government insured all deposits at Silicon Valley bank, even those above the $250,000 threshold.
We wanted to know if deposits at rural community banks are safe. So we invited American Farm Bureau’s Chief Economist, Dr. Roger Cryan to put our minds at ease. He talked to RFD-TV’s own Tammi Arender about what his thoughts are about the government’s intervention in the case, if he believes there will be knock-off effects on small community or rural banks, and if what producers should know about the state of the banking system.
Tommy Grisafi is a risk asset manager and frequent guest on RFD-TV. He told Scott Shellady on the Cow Guy Close that there is one major difference between rural main street and Wall Street.
“The one thing I wanted to say on your show is that American agriculture is dealing in millions and big time Wall Street finance is dealing in billions. When it comes to millions, we can still finance and protect it via FDIC, a quarter of a million at a time. When it comes to the billions, you would have tens of thousands of accounts to hit into that quarter million.”
Grisafi is a member of the North Dakota and Iowa Bankers Associations. He said bankers have received calls this week and have helped farmers set up multiple accounts to make sure they are protected.