1min snip

Bankless cover image

Ram Ahluwalia Predicts MORE Bank Failures

Bankless

NOTE

The Teapot Analogy: How regulators contain bank runs

The speaker uses the tempest in a teapot analogy to explain how a teapot can contain a bank run./nRegulators have two main strategies to prevent bank runs: providing liquidity to banks and preventing underwater loans from being sold./nThe Bank Term Funding Program and the Fed Discount Window are two examples of programs that provide liquidity to banks during a bank run.

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