News for hackers. Stuff that matters.

A comment on Binance Acquires FTX. Parent comment

Re:Binance Acquires FTX by oldgradstudent on Tuesday November 08, 2022 @05:55PM (#33525430)
Banks lend deposits. That's how they make their money. They have to keep some part of the deposits as a reserve.

Real regulated banks have access to the Fed to borrow in a case of a bank run.

[ Parent | on HN ]
Re:Binance Acquires FTX by mrep on Tuesday November 08, 2022 @07:24PM (#33526089)
And FDIC to de-risk customers from feeling they need to do a bank run.
[ Parent | on HN ]
Re:Binance Acquires FTX by oldgradstudent on Tuesday November 08, 2022 @08:05PM (#33526375)
To a large extent, but not completely.

Anyone who has more than the insured amount, or anyone who needs their money in the near future will still engage in a run.

There were several runs during the 2008 crisis, the most famous is the run on IndyMac Bank.

https://en.wikipedia.org/wiki/IndyMac

[ Parent | on HN ]