No, it works like this: while no one company is “that big,” ANY large bank collapse can spark fear and uncertainty. Since the whole worldwide system is built on fractional reserve banking, and since no bank EVER has enough money to meet all liabilities in cash, fear and uncertainty can = runs. Runs are the death of financial systems.
As is having debts in excess of reserves.
My understanding is that many banks are beyond their reserves and have and are borrowing money from the Fed to meet those requirements....those loans to meet reserve requirements do not extend forever.
At some point, they need to meet their reserves.
If they sell their assets to do that, that means they will have to have assets marked to market rather than the fictional amounts on the books.
I know of one company that got about .18 cents on the dollar doing just that.
That’s not what toddsterpatriot says. (Assuming, of course, that I understood what he was trying to say).