Audio: What's a Bank Run?

IndyMac's quick demise is partly blamed on a bank run that quickly drained assets and destabilized the bank. Customers believed that there was a problem, and they helped make a potential problem a reality. We've discussed bank runs and why they happen, but you can now listen to a podcast on the subject.

Slate's Explainer series explains complex things in plain language. Recently they tackled the subject of bank runs. The episode goes into some good detail and explains:

"even an entirely healthy bank can go under if enough depositors believe it to be unsafe".

To see Slate's take on Bank runs, read a transcript or download the podcast (MP3 File).

Further reading:

• How Bank Runs Work