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No, it wasn’t insolvent until the bank run on Thursday. Very few, if any, banks can handle a $40 billion transfer off their balance sheet unexpectedly, but a ba
by jsjohnst 4y ago
No, it wasn’t insolvent until the bank run on Thursday. Very few, if any, banks can handle a $40 billion transfer off their balance sheet unexpectedly, but a bank CEO should’ve known their reckless actions could easily have triggered one, especially one with very high deposits and very few customers (as in, it doesn’t take many customers to decide to move their deposits to cause a real hurt).
- antibasilisk 4y ago>Very few, if any, banks can handle a $40 billion transfer off their balance sheet unexpectedly The conclusion from this isn't that it was solvent and suddenly became insolvent. The conclusion is that almost every bank is insolvent.
- jsjohnst 4y ago> The conclusion is that almost every bank is insolvent. In as far as “the sky is blue”, except when it’s cloudy, or night time, or the sun goes supernova.