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> Most other US banks are just as exposed to long term bonds and mortgages And maybe that is the crux of the issue here? https://www.cnbc.com/2018/05/24/trump

> Most other US banks are just as exposed to long term bonds and mortgages And maybe that is the crux of the issue here? https://www.cnbc.com/2018/05/24/trump-signs-bank-bill-rolling-back-some-dodd-frank-regulations.html https://www.cnbc.com/2018/05/24/trump-signs-bank-bill-rollin... “When the president signs this, we put community banks back in the mortgage lending business, which is really exciting for me,” Sen. Heidi Heitkamp, D-N.D., told CNBC on Wednesday. "exciting" > Which fractional reserve bank is actually safe from a bank run? No FRB is 'safe', but the people who hold money in there are safe as long as they are managing their 250k risk... https://www.intrafi.com/solutions/depositors/ https://www.intrafi.com/solutions/depositors/

grey-area 4y ago
Customers who hold money at banks are not the problem - individual savers losing some cash savings is not systemic risk and substantial cash savings are rare anyway after 10 years of zirp. Company bash balances are the problem here, which for any companies greatly exceed insured deposits and these cash deposits are required to meet payroll and other commitments if they are not making profit at present (most startups). Hundreds of thousands losing their jobs because of multiple bank runs is the risk at this point, because of companies unable to pay workers/services and unable to raise more money.