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Is there any bank out there that can survive a panic bank run?
by Spivak 4y ago
Is there any bank out there that can survive a panic bank run?
- qzw 4y agoYes, if you count central banks and don’t mind hyperinflation. But that’s probably not what you’re asking. I don’t think any ordinary commercial or retail bank could survive a run without outside help.
- guestbest 4y agoSure, as long as the bank makes a cryptocurrency to back up deposits
- metalspot 4y agoJP Morgan Chase, Bank of America, Citibank, and anyone else who will be bailed out by the fed. But seriously, the problem with SVB was that their assets are trash and everyone knew it. If their assets were actually worth what they claimed they would have no problems.
- funstuff007 4y agoI don't know about that. I think it's more that they never hedged their interest rate risk (or they invested in assets that were too long duration).
- skeeter2020 4y agoThis is not the same situation as dogshit assets from the sub-prime crisis; the bonds are not "trash" in the sense people are thinking, but long-term, lower interest instruments. As interest rates have risen they are a relatively poorer invesment, but still have the long-term (illiquid) value of the underlying asset less the curret rate to return differential. It's inaccurate to say they mis-stated the value of their assets.
- deleted 4y ago[deleted]