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Sorkin Raises a Critically Valid Point in His Article, FDICs Novel View of Risk  Form

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- [Narrator] This is a run on a bank. This is also a run on a bank. And while these people lost their money, these people didn't thanks to a government agency designed back then. - [President Roosevelt] We do not want and will not have another epidemic of bank failures. - [Narrator] The FDIC exists to ensure your money is safe and that bank closures don't rattle the US economy. Here's how it works and what happens when your bank fails. Let's start back with these people in the middle of the Great Depression. They were afraid their banks would go out of business and their money would vanish, so they'd run to withdraw it all first. But the issue, as President Franklin Roosevelt explained at the time, was- - [President Roosevelt] When you deposit money in a bank, the bank does not put the money into a safe deposit vault. It invests your money in many different forms of credit. - [Narrator] He means your bank doesn't have enough cash on hand to pay out all their accounts at once, not back

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