Top 15 For 2008 (No. 3): Bank Runs
StreetInsider.com has put together its 'Top 15 For 2008' which chronicles our view of the most significant news on Wall Street during the tumultuous year.
Number 3: Bank Runs
A "bank run" was something we only read about in history books or saw watching holiday favorite "It's A Wonderful Life", but all that changed in 2008. With the collapse of the financial system, bank runs again were back in our vocabulary. A bank run is a mass customer exodus of assets from a financial institution on fears of insolvency. Because banks only keep a small amount of deposits on hand and lend the rest out, a bank run can force a failure of the institution.
The U.S. subprime debacle exposed the balance sheet of the world's banks, and what people ...
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