Are Wall Street Protesters Capable Of Starting A Run On A Too Big To Fail Bank?

[FarCenter]

Conclusion: Ok, I assume you get the point. There is very little risk of a “run” on TBTF banks given their current liquidity positions. Here’s the most ironic part: banks would actually be more than happy to have certain unprofitable deposits leave the bank. With each incremental dollar sitting at the Fed or going into USTs, there is little/no value for new deposits.

Furthermore, by de-leveraging through deposits leaving, bank capital ratios would actually IMPROVE! The denominator in certain bank capital ratios is “average assets”, so a reduction of deposits would actually improve capital ratios.

Read more: http://www.businessinsider.com/are-wall-street-protesters-capable-of-starting-a-run-on-a-too-big-to-fail-bank-2011-10

---

On the other hand, a dozen hedge fund an private equity fund managers are probably capable of starting a run. That's what they did with Lehman, and others.