undefined | Better HN

0 pointsaxlee3y ago0 comments

> A bank that can't pay back 100% of deposits has failed.

Well, not at the same time. No bank can do that.

0 comments

3 comments · 1 top-level

samstave3y ago· 2 in thread

The fed seems to have never had a problem when all their customers [i.e. banks/hedgies/wallstreet] come asking.

mhluongo3y ago

It's easier when you can print money :)

brian_cloutier3y ago

I believe the implication is: why aren't we using the fed for our banking, this kind of bank run would be impossible. The fed provides guarantees to banks but not to retail and that's a policy decision we could change, if we wanted to.

3 more replies

j / k navigate · click thread line to collapse