Why did they not freeze The bank when the run first started?
They could’ve done that they waited until it was almost depleted
The solicitation the bank made for I think $2 billion was not indicative that they were fixing to collapse yet people panicked and removed 90+ percent of all deposits and destroyed the bank
Bank still has loan portfolios etc
Somebody here explain to me why they let the run on the bank for 48 hours
Ice simply do not have all cash deposit because They make Loans and other investments with your money
And charge fees
It’s how they profit
They are only required to have a certain percentage of cash deposits on hand and when they need to bolster that they also go to bankers banks or in some cases the federal reserve
I wish bbluflag was still with us
He was a Texas bank president and could explain this better
“Why did they not freeze The bank when the run first started?”
I don’t know how that can be done. There was a Regulation D, currently suspended, that limited the number of withdrawals from savings that you could make per month but I don’t know that there was a quantity restriction.
“Regulation D helped ensure banks had adequate reserves by limiting the number of withdrawals customers could make from savings and money market accounts each month. The rule never applied to checking accounts, which is why those always allowed unlimited withdrawals.
However, as part of the federal government’s financial response to the Covid-19 crisis, the Fed made changes to Regulation D so people could dip into their savings more frequently without penalty.”
https://www.forbes.com/advisor/banking/savings/regulation-d/