More people are asking about safe places to put their money because of heightened worries about bank stability. Keith Short, IberiaBank’s Baton Rouge president, says more people are shopping for safety and security for their money, particularly after the scandal involving Stanford Financial Group. The 122-year-old bank’s deposits increased 5% last quarter, which Short says was partly because of its longevity, which includes surviving the Great Depression as well as the oil bust of the 1980s. Bankers call the trend a “flight to quality.”
Bill Potter of Postlewaite & Netterville says, “People are asking ‘Who do you trust?’ We’re hearing that repeatedly now. Potter says people are saying as long as they can trust banks, ‘I’m going to just park my money there.’”
Don Ayres, president of American Gateway Bank, says more people are asking him for advice about safe investments. Ayres says he’s receiving more questions about FDIC coverage after Stanford because of the company’s prominence. “It’s top-of-mind awareness,” he says. “There is a lot of uncertainty in the market today and definitely a consciousness of safety by most people who have investment funds.”—Anna Thibodeaux
