Giant Sucking Sound?

Neil,

What a fantastic set of questions. Really hope some bankers can provide insight here because I'd love to know the answers.

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Rob Blackwell
Chief Content Officer and Head of External Affairs
IntraFi Network
Arlington, VA
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Original Message:
Sent: 06-10-2022 11:32
From: Neil Stanley
Subject: Giant Sucking Sound?

30 years ago, presidential candidate Ross Perot used the phrase "Giant Sucking Sound" to focus attention on the expectation of coming economic changes.

Today, I am curious how many bankers are hearing this sound now or can see it coming in regard to public deposits.  Bankers in recent weeks have been telling me that their public fund deposits are in play.  With entities like the Kansas Municipal Investment Pool offering dramatically higher interest rates after just two rate increase by the Federal Reserve since 2020. https://host.treasurer.state.ks.us/kmip_rates.php

Are there any states or regions of our country in which this type of public depository option is not available, common, or even feasible?  How does the pricing available in my example above for Kansas compare to what is available in your area?

Do you anticipate that public funds will be sucked away from your operation?  Anyone want to share their strategies for addressing the exodus of public fund deposits?

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Neil Stanley
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