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Why would a bank make a sub-prime loan if they think the loan will fail?
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What was the first bank to fail in 1929?
colombian national bank
What percent of bank loans fail?
5%
What are the costs and benefits of a too-big-to-fail policy?
Costs:Too big to fail policy increases the risk taking habits of the bank. The bank which otherwise would have been very cautious on its risky activities as it is being scrutinized by the depositors would not worry that much as depositors have less incentive to monitor the banks risk taking activities.It create undesired discrimination against the small banks as small banks does not benefit from the too-big-to-fail policyBenefits:The investors are assured that the bank will not fail and hence there is less panic to have a bank run kind of situation. This provides a degree of stability to the financial system.
Why would the government want a bank to be successful?
Of course everyone with any brains would want a bank to be successful. If the bank is successful everyone wins. If they fail the taxpayers loose because most of the deposits are insured by the FDIC and the taxpayers will have to pay dearly for that failure.
What would be a good caption for a photo of the Titanic?
Too big to fail?On the Lighter Side"I think."
Why did indyMac bank fail?
http://www.researchmethods.org/IndymacBankFail.pdf has a good answer.
What body parts would fail first without food or water?
I think that your extrimities would shut down first.
What was the strongest argument against Hamilton's Bank of the US?
If this new Bank of the United States were to fail, and collapse, the money would be gone. Results would be quite like the great depression of the 1930's, except with a lot more rioting.
Can you go to jail for bank overdraft?
It depends. You cannot be jailed for just availing the bank overdraft facility. But if you fail to pay back the money you owe the bank that you utilized by means of the overdraft option, then the bank can initiate a legal proceeding against you and you may be jailed if you fail to pay the money.
What would you think if we no longer had computers?
i think that alot of kids would just fail there class cause alot of kids use the computer for helping them to know more stuff.
In what year did Continental Bank fail?
■Its headquarters closed down in 1952.
Who said nobody plans to fail they fail to plan?
I think the quote is "by failing to plan, you're planning to fail" I could be wrong, and I think its by Abraham Lincoln, but I could be wrong. :]
