tag:blogger.com,1999:blog-2761684730989137546.post2178929276797897495..comments2024-03-28T04:13:36.779-04:00Comments on Mike Norman Economics: Bernanke: I Didn't Pressure BofA Into Merrill Mergermike normanhttp://www.blogger.com/profile/03296006882513340747noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2761684730989137546.post-42644764084291415732009-06-26T07:19:36.078-04:002009-06-26T07:19:36.078-04:00Is this an artificial bank run caused by bad polic...Is this an artificial bank run caused by bad policy, or is it similar to the classic ones as well ?<br /><br />Of course the classic examples happened when there was no Fed.<br /><br />Maybe there is no place for regulation anyhow in these matters.<br /><br />Regulation when "they" want itgoogleheimhttps://www.blogger.com/profile/14459089745473598235noreply@blogger.comtag:blogger.com,1999:blog-2761684730989137546.post-7724829461285593002009-06-25T16:19:51.339-04:002009-06-25T16:19:51.339-04:00Even without collateral, the Fed's own policy ...Even without collateral, the Fed's own policy is to provide overdrafts at a penalty (albeit a substantial penalty). See page VI-2 of the Account Management Guide for banks at http://www.frbservices.org/files/regulations/pdf/amg.pdf In fact, the Fed considered a few years ago limiting banks' uncollateralized overdrafts in some instances but due to outcry from banks decided not to. Amazing. <br /><br />What's the public purpose in demanding collateral if the regulators have been approving the assets all along? Just leads to a bank run, as happened here. <br /><br />ScottSTFhttps://www.blogger.com/profile/16261666934714196464noreply@blogger.com