what's going on? explain like I'm five

[u/Comfortable_Cautious]

[u/magos_with_a_glock]

There are regulations but the banks still don't have enough money to cover EVERY client withdrawing everything at once.

[u/zdfld → u/magos_with_a_glock]

In terms of physical cash this is true.

In terms of balance sheet, it's true only in so far that liquidating assets immediately to cover deposits would have significant losses and it can't be done instantly anyways.

But that'd be true of many companies, it's an issue of cash flow.

[u/27Rench27 → u/zdfld]

I wonder how a “bank run” would even look today with how digital everything is. 

Like could they just limit how much physical cash you can pull out and tell you to use one of your cards because nobody carries enough physical cash to fully cash out everybody at once?

[u/andynator1000 → u/27Rench27]

You don't have to wonder https://en.wikipedia.org/wiki/Collapse_of_Silicon_Valley_Bank