Wednesday, September 18, 2013

WHY THE BANKS FAILED (and will fail again)

I should have posted this with my Five Year Anniversary post on the market meltdown.

From the Financial Times, but via Zero Hedge, we get the five primary reasons banks failed in 2008 - reckless mergers (M&A), not enough cash reserves (LC), excessive debt-based bets (RFS), poorly vetted loans (BL), and too many stupid bets on derivative products (BI/T) - in an easy to understand infographic (click here to enlarge) ...

The key, for me, is the "What hasn't happened?" category at the bottom. The banks are still on life support, and they're still too big to fail.

- Mark 

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