Counterpoint - this is the type of risk that should be abstracted in our system. Screwing around with cash management for risk avoidance is yet another layer of effort that shouldn’t be passed on to the consumer (business or individual) which is the result of an old system that doesn’t exist anymore where a community bank had a comprehensible level of risk and reach.
I think this is probably where we will end up: Deposits above the FDIC insured level have to automatically go into money market funds with a weighted average maturity of 5 days or less instead of the loan portfolio of the bank.
