What Happens If The Big Banks Collapse

U.S. And UK To Test Big Bank Collapse In Joint Model Run -- Reuters

Oct 10 (Reuters) - Regulators from the United States and the United Kingdom will get together in a war room next week to see if they can cope with any possible fall-out when the next big bank topples over, the two countries said on Friday.

Treasury Secretary Jack Lew and the UK's Chancellor of the Exchequer, George Osborne, on Monday will run a joint exercise simulating how they would prop up a large bank with operations in both countries that has landed in trouble.

Also taking part are Federal Reserve Chair Janet Yellen and Bank of England Governor Mark Carney, and the heads of a large number of other regulators, in a meeting hosted by the U.S. Federal Deposit Insurance Corporation.

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My Comment: I expect the detailed results and conclusions from this "bank collapse test" to remain a secret .... but I do not need to read the conclusions from such a report to know what will happen if the major banks do collapse .... I saw it happen in Moscow in the early 1990s when many of the major banks imploded and the ruble collapsed. To put it bluntly .... it is a not a pretty site. Prepare for a return to barter, high unemployment and under-employment, inflation, and the power of having foreign currencies in your pocket.