The Financial Column — What the Liquidity Crisis Tells Us About Deposits

2009-06-15

Steve Turner on the CEO Show: Why competition for bank deposits will intensify

Steve Turner, a Managing Director of Novantas LLC, said on “The CEO Show,” “Over the last thirty years, banks systematically exhausted their storehouse of excess liquidity. Thirty years ago, a quarter of the banks’ deposits were in liquid investments and the rest were in loans. Today, this safety margin is gone: 100% of deposits are funding loans.”

Turner spoke on the syndicated radio program, “The CEO Show” with host Robert Reiss during a segment of the program dedicated to the discussion of challenges facing U.S. banks now functioning post financial meltdown, entitled “What the Recent Liquidity Crisis tells us about Deposits.”

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