bank run
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Puzzle #301 · March 29, 2026
A bank run happens when a large number of depositors simultaneously withdraw their money from a bank because they fear it will become insolvent. The cruel irony is that the fear itself causes the failure—a bank that was solvent yesterday can collapse today if enough people demand their cash at once, because banks lend out most deposits and don't keep enough on hand for everyone.
The most devastating bank runs occurred during the Great Depression, when thousands of banks failed. The FDIC (Federal Deposit Insurance Corporation) was created in 1933 specifically to prevent bank runs by guaranteeing deposits up to a set amount. The 2023 collapse of Silicon Valley Bank showed that bank runs can still happen, just faster—via smartphone.
The most devastating bank runs occurred during the Great Depression, when thousands of banks failed. The FDIC (Federal Deposit Insurance Corporation) was created in 1933 specifically to prevent bank runs by guaranteeing deposits up to a set amount. The 2023 collapse of Silicon Valley Bank showed that bank runs can still happen, just faster—via smartphone.
Puzzle Appearances
The expression bank run has appeared in 1 puzzle:
- Puzzle #301 on March 29, 2026
Rate of Appearance in English Language Print
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