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"Every banker knows that if he has to prove he is worthy of credit, in fact his credit is gone." - Bagehot


"Exchanges"(Exchanges and brokerages in one) are not supposed to be banks. Everything can be withdrawn from brokerages without them being insolvent.


If the brokerage provides leverage to its customers, it can be subject to the same sort of bank runs that a normal bank can.


Indeed. And in this case, it was from one day to the next.


+1 That's a great book.




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