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They didn't hold deposits. So it's kind of reasonable. They are called "bank" but they aren't the same kind of institution.
by ivalm 3y ago
They didn't hold deposits. So it's kind of reasonable. They are called "bank" but they aren't the same kind of institution.
- dtech 3y agobut it's misleading. The financial crisis was basically triggered by those, and not by the ones shown here in 2008-2009.
- bhaak 3y agoBut they held "value" that was "gone" from one day to the other which triggered the financial crisis. In reality they weren't worth anything but the realization that those values were worthless was the trigger. But those values were on the balance sheets and should therefore be visualized as well.
- ajross 3y agoOnly where "deposits" are defined as FDIC-insured consumer accounts. Clearly they held other people's money for them, which is pretty close to the economic definition of a bank.