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"Every banker knows that if he has to prove he is worthy of credit, in fact his credit is gone." - Bagehot
by pranshum 4y ago
"Every banker knows that if he has to prove he is worthy of credit, in fact his credit is gone." - Bagehot
- BLanen 4y ago"Exchanges"(Exchanges and brokerages in one) are not supposed to be banks. Everything can be withdrawn from brokerages without them being insolvent.
- pranshum 4y agoIf the brokerage provides leverage to its customers, it can be subject to the same sort of bank runs that a normal bank can.
- edouard-harris 4y agoIndeed. And in this case, it was from one day to the next.
- AlexMoffat 4y ago+1 That's a great book.