If all banks failed overnight, what would happen tomorrow?

My guess: First everything would stay completly still, no trades of goods and services. People and businesses would would be paralyzed until the banking start working again. AFter a couple of days looting and a crime peak would start. read more

Now, imagine all banks failing overnight. In the midst of the crisis I made a comment to an institutional client who demanded of me what would happen to her Maryland money market fund if the entire state of Maryland went bankrupt on the same day: every agency, every municipality, county, etc. The entire state, famously AAA. read more

The big four banks occupy 75 per cent of the current accounts market, and if one of them was to fail, a huge chunk of money would suddenly drop out of circulation into thin air. The consequences would likely be catastrophic: cash machines, debit cards would all stop working, threatening the entire financial system with collapse. read more

See 2009 list of failed banks and 2010 list of failed banks. Customers can have a complicated relationship with their bank. Checking, savings, loans, mortgages, safe deposit boxes and all the other services banks provide become a routine part of our lives. A disruption in service can be more than a hassle. read more