Bank Runs Are Terrible. The Fed Can Eliminate Them.

The BWC is pleased to Member Spotlight BWC Chair Bill Dudley's recent Bloomberg Op-Ed, offering a nuanced analysis on substantial reforms for the Federal Reserve to effectively mitigate the occurrence of bank runs.

According to Dudley's article, "Almost a year ago, America experienced a frightening financial shock: a run on banks, in which depositors raced to pull money out of institutions that they feared were about to collapse. Such events can and should be a thing of the past, but this will require significant changes in the way the Federal Reserve backstops the banking system."