Banking System Challenges
The legal battle over ATMs marked a pivotal moment for banks, as the Supreme Court ruled they weren't considered branch banks. As inflation rose in the late 1960s and 1970s, deposits began to flee to alternative investments, leaving banks struggling to fulfill their obligations. This turmoil contributed to the savings and loan crisis of the 1980s, highlighting the vulnerabilities of small banks heavily invested in real estate and prompting a reevaluation of the unit banking system.In this clip
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EconTalk
Charles Calomiris and Stephen Haber on Fragile by Design
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