Will bank fraud lead to bank runs?
Just had a property mgt company lose $280k of customer's money stolen through a computer hack -- WFC says tough luck. . .
What happens when this becomes an every day occurrence? I'm betting we'll see much more cash held outside of the banking system. In the 1930s, after the bank "holiday" the populace began to hide gold, silver and cash underground. Interest rates are practically nonexistent. So, if the banking system isn't going to back-stop their customer's wealth, it makes a lot of sense to safeguard your cash yourself. This problem is more serious than most think. JMHO.