|
|
|
|
|
|
by johnrgrace
1705 days ago
|
|
|
Banks have two things
1. Whateve they don't hold in cash is invested in loans, cash plus loans have a value greater than the redemptions they could face.
2. In the case of liquidy problems they have the federal reserve system to backstop a healthy bank with cash so there isn't a run on the bank. Tether, well who knows? Tether has cash + nothing which very likely is less than the redemptions they may face. If people want to get real cash out tether has no one to go to to make sure they have cash. |
|
|