The G Word with Adam Conover – Run for Your Money

In the early 1900s, the banking system wasn’t as stable as we might have hoped. Banks loan out money to borrowers, but are susceptible to a panic when a lot of customers want their money held in savings. A bank run occurs when a large number of a bank’s depositors attempt to withdraw their money simultaneously because they believe the bank will become insolvent. This happened frequently enough during the Great Depression that it put pressure on the President to create an insurance program.

It’s a Wonderful Life — Bank Run

With things headed in the wrong direction economically, George tries to head to the bank to convince the town members that they shouldn’t withdrawal all of their money from the bank at once. He quickly recognizes that a bank run would cripple the local economy and he does what he can to prevent it.

Up ↑