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“This Should Scare The Hell Out Of Bankers & Regulators Worldwide”

From “everyday joes” to the corporate CFOs, men, women, and others, are frantically battling a prisoner’s dilemma about their banking relationship this weekend: “I’m fine if they don’t draw their money, and they’re fine if I don’t draw mine…”

But, given the lines outside banks and less than reassuring sentiment from Washington, we suspect it is too late and the that dilemma is over – now it’s every man, woman, and child for themselves. As The FT report on one CFOs decision-tree:

“I got a text from another friend – he was definitely moving his money to JPMorgan. It was happening,” the finance chief said.

“The social contract that we might have collectively had was too fragile. I called our CEO and we wired 97 per cent of our deposits to HSBC by midday on Thursday.”

And as explained below, the new normal ‘bank run’ is instant, huge, and devastating.

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6 thoughts on ““This Should Scare The Hell Out Of Bankers & Regulators Worldwide””

  1. Most folks hold under the FDIC coverage limit $250k. The minority needs to worry and diversify properly.

    This shows how fragile everything in this country remains. Open ones eyes and be aware of your surroundings at all times.

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