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National retail banks are not going to fail. This was a pretty unique circumstance: deposit base had tripled in 3 years, serious failure in risk management, mos
by pbourke 4y ago
National retail banks are not going to fail. This was a pretty unique circumstance: deposit base had tripled in 3 years, serious failure in risk management, most deposits from business customers well above the deposit insurance limits.
- pgwhalen 4y agoRight. My point in saying "all banks would fail if there were a run on them" is just that if for some reason, every depositor at JP Morgan were to decide to withdraw their deposits on Monday in favor of some other bank, JP Morgan would fail. There are so so many reasons that won't happen, but the statement is true and is useful to keep in mind when thinking about banks and the banking system.