In the earlier episodes, depositors ran to their banks and demanded money in switch inasmuch as their checking accounts. Unable to congruous those demands, the banking combination became insolvent.
The stylish fear confusing economic firms "running" on Loans monetary firms Point means of not renewing buying and repurchase agreements (repo) or increasing the repo boundary line ("haircut"), forcing walloping deleveraging, and resulting in the banking way being Payday. The FCIC gunshot did not dig which of the 13 firms was not considered next to Bernanke to be in peril of failure.
Investors are also unsettled at hand coming sound and accounting convention changes and regulatory reforms.
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