Euro Crisis : The case of Bank runs

BANK runs don’t always involve small depositors queuing round the block. As we saw in 2008, institutions can withdraw their money with devastating effect.

US money market funds are exiting the euro zone in what can only be described as a stampede. The rating agency Fitch says that the funds’ exposure to euro zone banks has dropped by 33% since May this year, and is now 78% down on its May 2011 Continue reading “Euro Crisis : The case of Bank runs”