April 13, 2009 5:03 PM
Simon Johnson writes in Economix for the NYT that with the FDIC having unlimited drawing power from the FED in case of emergency and also with online banking, a depression era, consumer-type run on a bank in which people lined up to withdraw their money is no longer likely. However, a new kind of run where investors run from a bank’s equity and perhaps debt securities is a very real possibility.
More on this topic
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Lack of Prosecution of Bank Fraud: Conflict of Interest?
(Money Morning, 2/2/12)
“Shadow Fed” Casts a Shadow Over the Solvency of the U.S. Banking System
(Money Morning, 3/17/09)
Financial Stock Options
(Wealth Daily, 3/17/09)
Anglo Irish Bank Nationalized - Equity Worthless
(Top Foreign Stocks, 1/17/09)







