What a Collapsed Banking System Looks Like

In the 1930’s the collapse of the banking system propelled the world into an economic collapse.  Depositors lost their savings, confidence was shattered, companies starved for capital went out of business overnight, borrowers defaulted en masse and unemployment soared.  A collapsed banking system guarantees an instant economic depression. A mere generation later, the world is […]

Banking Update – Daily Banking News

Welcome to Banking Update, a roundup of articles and news from around the internet. The FDIC settles a civil lawsuit against Washington Mutual executives for a fraction of the $900 million originally sought.  Virtually none of the settlement money came from the three WAMU executives but rather from insurance policies covering professional misconduct.  The three […]

Can The Banking Industry Survive Another Five Years Of Declining Housing Values?

The banking industry came close to collapse in 2008 as loan defaults surged and property values collapsed.  Government intervention and successful efforts to raise additional capital by major banks have since stabilized the banking industry, despite a record high level of delinquencies (see Consumers Delinquent on $1.3 Trillion Of Debt). Where we go from here […]