What Electronic Bank Run?

Rep. Paul Kanjorski has been all over the YouTubes this week talking about an electronic bank run during mid-September's near meltdown. Kanjorski says the Federal Reserve alerted lawmakers to it. His star turn prompted several of you to write with varying versions of:

Is this true?

Portfolio blogger (and Planet Money friend) Felix Salmon has an answer. On the short:

This is all, frankly, fiction, and it's not clear where most of it came from, although maybe Kanjorski's "friends" on Wall Street are the same people as Michael Gray's sources at the New York Post. Thinking back to that crazy week it's easy to get details wrong, especially when you're speaking off the cuff on a call-in show. But let's stop treating it as though there's any substance to it. Please.



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