Why The First Republic Failure Is Different
Slate Money
00:00
The Problem With Financial Journalism
Bank stocks by their nature are significantly more volatile than most other stocks. Because of the way that fractional reserve banking works, the amount of the ratio of liabilities to equity at a bank is way higher. It's like 10 to 1 compared to maybe one to one at a normal company. And so you just wind up with a situation where it's incredibly easy for a bank to go to zero.
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