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No bank is infinitely liquid. Processing transactions at the volume that happened during the run is the opposite of "normal bank stuff." Neither of those points
by zippergz 4y ago
No bank is infinitely liquid. Processing transactions at the volume that happened during the run is the opposite of "normal bank stuff." Neither of those points make any sense, and they reinforce the point the original poster was making. If you think that a bank is in trouble because they can't handle a huge percentage of their depositors pulling out their money, you don't understand how banks work.
- twblalock 4y agoThe bank was having trouble processing routine transactions for Thiel's fund. That is definitely normal bank stuff. The bank was illiquid to the extent that it was impacting day to day operations. The events are described here: https://news.yahoo.com/thiel-founders-fund-withdrew-millions-005223787.html https://news.yahoo.com/thiel-founders-fund-withdrew-millions...