Even today, we tend to associate the phrase "run on a bank" with long lines of restive people waiting outside of banks to get access to their accounts. With the failure of IndyMac, we saw jarring images of waiting customers that were reminiscent of a previous era.

More recently, the idea of a technology-enabled silent run on banks has cropped up, especially regarding Wachovia. In many cases, more deposits have been withdrawn online than in person, reports Reuters. It notes the case of Fortis and Britain's Northern Rock. Let's assume for a moment, that a bank's Web-based services were to fail at such a time, due to volume or a glitch. The outcry would be enormous. The immediate conclusion would be that the bank is tottering and doesn't have enough funds to cover all accounts. That would certainly be a disaster. But in a true run, would it also be inevitable?

For more:
- here's the Reuters article via Wall Street & Technology

Related Article:
IndyMac showing the way out?