"Regulators can make clear that recently withdrawn funds will be pursued aggressively, in order to treat all creditors equitably. It makes less sense to stage a run on the bank if you know that the bank will come right back and stage a run on you." That's not going to work. Once the horse left the stable it's gone for good no matter how aggressive the bank or regulators will pursue it. By the time they catch on chances are that money already found a new home on far away shores. Good luck with that pursuit!
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"Regulators can make clear that recently withdrawn funds will be pursued aggressively, in order to treat all creditors equitably. It makes less sense to stage a run on the bank if you know that the bank will come right back and stage a run on you."
Apr 02 07:15 am
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All Comments by Yoski »The Moral Hazard of Creditors [View article]
That's not going to work. Once the horse left the stable it's gone for good no matter how aggressive the bank or regulators will pursue it. By the time they catch on chances are that money already found a new home on far away shores. Good luck with that pursuit!