Recent Comments "A bank run is a self-fulfilling prophecy. As the probability of bank failure increases, more depositors seek to withdraw their money and fewer lenders are willing to loan short term funds to the bank." Latest News: September 25 2008: Washington Mutual closed by federal regulators amid bank run by depositors who withdraw over 16 Billion in assets in just 10 days. |
Recent Bank Runs & NewsOctober 7th 2008 - ICELAND - Landsbanki, Iceland's second largest bank, was put into government receivership today. Iceland leveraged emergency powers, dismissing the board of directors of Landsbanki and taking control. The Icelandic government has also claimed it properly sequested a loan from Russia of about 5.4 Billion USD, but Russia denies it has made a decision about the request. Interbank lending remains at an all-time low, as banks across the world become more wary of each other's solvency.
The liquidity crisis, becoming more global than national every day, is beginning to impact American markets in unforseen ways. September 26th 2008 - With stock value plummeting over 25 percent in a single day, Wachovia shuts its doors due to a lack of liquidity. A silent run on its deposits occured as depositors leeched over 16 billion USD during a 10-day run. In order to control the bank, the FDIC used special legislative authority to take control and build a package with Citibank. "the so-called silent run on the bank - it's real," said Carlos Evans of Wachovia. |
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