AlmightySnoo 🐢🇮🇱🇺🇦@lemmy.world to Lemmy Shitpost@lemmy.world · 1 year agoForbes' kiss of deathlemmy.worldimagemessage-square60fedilinkarrow-up1696arrow-down19
arrow-up1687arrow-down1imageForbes' kiss of deathlemmy.worldAlmightySnoo 🐢🇮🇱🇺🇦@lemmy.world to Lemmy Shitpost@lemmy.world · 1 year agomessage-square60fedilink
minus-squareChocrates@lemmy.worldlinkfedilinkarrow-up2arrow-down1·1 year agoDo banks have the authority to freeze withdrawals? I don’t get why SVP didn’t just block all withdrawals as the panic set it.
minus-squareAlmightySnoo 🐢🇮🇱🇺🇦@lemmy.worldOPlinkfedilinkarrow-up2·1 year agoIn theory yes: A bank can temporarily suspend withdrawals to stop a run; this is called suspension of convertibility. (https://en.wikipedia.org/wiki/Bank_run) But IMO freezing withdrawals would just add even more panic when the last thing you want as a bank is have more clients be anxious about their money.
Do banks have the authority to freeze withdrawals?
I don’t get why SVP didn’t just block all withdrawals as the panic set it.
In theory yes:
(https://en.wikipedia.org/wiki/Bank_run)
But IMO freezing withdrawals would just add even more panic when the last thing you want as a bank is have more clients be anxious about their money.