On the recordFebruary 29, 2012
If you think about that, what that really does is that it makes it unattractive to be the first person to be to withdraw your money and, therefore, it reduces the risk of runs considerably.
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congress.govBen Bernanke: “If you think about that, what that really does is that it makes it unattractive to be the first person to be to withdraw…”
Editor's note · Context
Bernanke explains how limiting immediate withdrawals can mitigate risks of runs on funds.
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Making derivatives safer is very important, part of solving Too Big to Fail and preventing another financial crisis.
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