Some things can’t go together. First Republic Bank has ceased operations, and everyone is piling on-Monday morning quarterbacking at its finest.
As many banks do, FRC positioned itself as a do-it-all solution for clients. We’ll handle your mortgage, line of credit, checking account, and invest your assets. One of those things that’s great until it’s not. Initially, I laughed at people lining up to withdraw money from the bank; it seemed old-fashioned, but if one institution held all of your assets, you’d be in line too. My point is this. Some functions must be managed by separate institutions, even if it’s more cumbersome or expensive—diversification of another kind. Don’t let the place where you do all your banking also handle your investments. The assets are likely held elsewhere, but why take the risk? There’s a difference between risk and probability. See the gas station scene in No Country For Old Men if you need a refresher.