The current story of the unfolding banking crisis may turn into a brief "dust-up" infecting a limited number of banks or...go beyond the Milky Way. What is certain, is current customers and borrowers of those impacted institutions are facing their own crisis beyond uninsured Federal Deposit Insurance Corporation (FDIC) deposits and access to funds.
The community of impacted business customers is large, unorganized, and in need of old-fashioned banking services, let alone access to basic capital needs. No doubt the commercial banking community is working at a fevered pace to transition accounts, albeit, subject to knowing your customer and the usual regulatory requirements. Hopefully, additional steps will be taken by regulators to unblock accounts and assist customers rapidly to keep basic commercial services flowing.
The spillover effects of this crisis are not yet known. That stated, payroll is Friday, rent and utilities are due and the vendors want to be paid. Cash is king. This crisis may sound over.. is it?
Stay tuned for more action on the banking front...
© Copyright 2023. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.