Fed’s Logan Says Large, Small Lenders Face Backstop Disparity

Federal Reserve Bank of Dallas President Lorie Logan says a discrepancy in backstops creates an unlevel playing field between the country’s largest banks and smaller community banks.

• The public perceives that the biggest banks will be bailed out by the government in times of financial stress, Logan says Thursday in opening remarks for a bank funding conference hosted by the Dallas, Atlanta and Cleveland Fed banks
• “Meanwhile, at community banks, deposits are insured only up to the $250,000 limit,” Logan says
• “When stress emerges, customers want safety above all else, and they’ve sometimes run to the biggest banks. Or customers ...