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The failures of Silvergate Bank, Silicon Valley Bank, Signature Bank, and the current struggles of First Republic and Pacific West Bank have seen bank deposits flee to the perceived safety of large banks.In the chart below, one can see the flight of deposits from small banks into large.Here we can see the significant premium 3-month US Treasury yields command over bank certificates of deposit (CDs).These issues, plus the new FedNow service which is set to begin trial runs in July, could represent an uphill battle for banks to retain deposits.Testing begins in July.Bank Failures will come laterThe Central Banks created a way to transfer funds quickly when the banking system fails. X22