November 17, 2021
Scam/Fraud

Bankers’ Hours column: Surplus money led to major banking failures

Now comes the Great Meltdown of 2008, aka the The Great Recession, aka the Financial Crisis. As Yogi Berra would have said, “It was déjà vu all over again.” If we stay on topic, we find the same thread connecting the S&L crisis of the mid-’80s and the 2008 crash, and we see that thread dangling out of the isolated incidents of banking booboos, such as the recent Credit Suisse debacle.

A surfeit of money on the table just lying there for the taking, drove banks off the bridge in 1985 and 2008. Which makes you wonder: Could it happen again? Of course, it could, but will the stars line up exactly right to make it happen? Well, we had a perfect storm of circumstances just 21 years apart, so we’re not talking about, say, a 500 year flood here.

Both events have been blamed on a long list of causes, by a lot of people much smarter than this writer: i.e. regulatory oversight failure; lack of adequate laws;…

Read full article here: www.postindependent.com