/biz/ - Business & Finance

>REPORTER: Secretary Yellen, thank you for coming in
>SECRETARY YELLEN: Its a great pleasure, thank you
>This bank that had issues this week
>The one where they ran out of funds?
>Yes
>That was very untypical I can tell you that much!
>How was it untypical?
>There's a lot fo these banks operating all around the world and very seldom does something like this happen. I just don't want people thinking that banks don't have money
>Did this bank have money?
>I was thinking more about the other ones
>The ones that have money?
>Yes the ones that don't spend all their clients money
>If this one didn't have any money why did it claim have 200 billion dollars in assets?
>Well, I'm not saying it didn't have money just that it didn't have as much as other ones
>Why?
>Some of them are run so they don't spend any of their clients money
>Wasn't this run so they didn't spend their clients money?
>Obviously not!
>How do you know?
>Because they used client's money and when people wanted it back the bank imploded! That's kind of a give away. I'd just like to make it clear that THAT is not normal
>What sort of standards are these banks operating by?
>Oh, very rigorous financial standards
>What sort are those?
>They're not supposed to spend all their clients money for starters
>What other things?
>There's regulations what kind of assets they're allowed to hold
>Such as?
>Sanctioned currencies are out. No sanctioned currency derivitives
>Like Russian treasuries?
>No Russian treasuries! No North Korean yuan, no North Korean tobacco
>No bitcoin?
>Bitcoin's out. And they gotta have an office. There's a minimum staff
>What's the minimum staff?
>Oh, one I suppose
>So the allegations that this was run to just make as much profit as possible, that's ludicrious
>Oh absolutely ludicrious, these are very strong institutions
>So what happened in this case?
>They ran out of money in this case but its very unusual