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/biz/ - Business & Finance

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>> No.56245664 [View]
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56245664

>>56245624
>>56245610
bank runs are caused by two ingredients:
>1) banks improperly taking excessive risk while not keeping enough pristine collateral
>2) people being too stupid to do proper due diligence on their own bank so as to not become a CREDITOR to an INSOLVENT INSTITUTION

...you DO know how solvent your bank is right? It's public information after all. Just make sure their equity/total assets at the very least exceeds 10%, and that their cash & eq. relative to their demand deposits is sufficient, or that you understand their derivatives portfolio (or at least the capital at risk), or at least their mark-to-market portfolio value...


....RIGHT??? You wouldn't lend money to an insolvent debtor, WOULD YOU?

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