Does the Fed's Framework Still Work? w/ Dennis Lockhart
Real Vision: Finance & Investing
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The Fragility of a Bank
No amount of relief from reserve requirements is going to save you from from the kind of deposit outflow that, for example, Silicon Valley bank saw. A bank is a fairly fragile edifice in the first place. Leverage of 10 to one, basically. So a small capital based relative to total assets. Also a tendency to borrow short and lend long, which is an insolvency problem waiting to happen.
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