Why were runs during the financial crisis of 20072009 not limited to institutions with large exposures to subprime mortgage lending?

multiple choice

• When one bank fails, other banks must follow, and so the failure of one bank results in large and cumbersome fines paid by similar institutions.

• Shadow banks that did not have large exposures to subprime mortgage lending were largely unaffected by the crisis.

• All banks and shadow banks had large exposures to subprime mortgage lending and so were directly affected by the problems in that market.

• Banks and shadow banks are highly interconnected with one another and so problems in one institution can quickly spread to others, making otherwise healthy institutions vulnerable.