Re:The Fed stalls the creation of a bank with a novel busine...
by cm2187 on Saturday September 22, 2018 @04:21AM
(#18045078)
They are unsecured liabilities. But like all liabilities the bank received an asset when it issued it (cash or else), and like all liabilities the bank must have sufficient assets to pay it back on demand. The bank may not have the necessary liquidity to pay back all deposits at once (some of these assets are 30y mortgages) but it has an asset (otherwise is not solvant).
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