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Close Topic OptionsWhy Banks Fail
Why Banks Fail - Politics, Business, Civil, History - Posted: 30th Oct, 2008 - 2:46pm
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Agree or Disagree? According to Dan Quayle
Post Date: 30th Oct, 2008 - 4:24am / Post ID: #
Why Banks Fail
Why Banks Fail
Look at the below quote and state whether you AGREE or DISAGREE:
"Bank failures are caused by depositors who don't deposit enough money to cover losses due to mismanagement"
-- Dan Quayle (American 44th US Vice President under George Bush (1989-93). b.1947)
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Post Date: 30th Oct, 2008 - 2:46pm / Post ID: #
Fail Banks Why
I disagree with that statement. Banks fail because they mishandle the depositors money in the way the lend out to others. If they lend all their money out in high risk loans or high risk investments then they may very well fail. You need to make sure as a bank to invest all the moneys wisely so even if you have some high risk out there you still have enough in safer investments to cover the high risk ones.
TOPIC: Why Banks Fail