Liquidity crisis

The liquidity crisis is the inability of a quick sale of assets (an enterprise, a company, a bank) at a price close to the market, and the inability to pay its obligations and the legal money claims placed on them without interruption. Nevertheless, there are differences between the liquidity crisis and bankruptcy , as if the shareholders make a decision on incurring additional costs to raise funds, the liquidity crisis can be overcome, which usually strengthens the bank's market position.

At various times, many of the largest banks around the world experienced a liquidity crisis, including Fannie Mae , Freddie Mac and Lehman Brothers , the latter still going bankrupt.