Bank Run
Bank Run Prevention 101, And The Recent Band-Aiding By the Government
Submitted by Tyler Durden on 02/05/2009 19:12 -0500A few days ago the Fed had to (was forced to) postpone the expiration date of virtually all liquidity facilities designed to stop and prevent the mother of all bank runs, which followed the Reserve Fund's breaking the buck after Lehman's collapse. As few people pointed out, the removal of these contingencies would likely have brought the liquidity crisis back with a vicious bang. Furthermore, it reminds us once again of the truly bad shape the liquidity component of the U.S.
