Busted: Bankers and The Global Economy

February 4, 2008

China Denies Bank Bail-Out

Filed under: banking, central bank, money — Tags: , , , , , , — digitaleconomy @ 12:02 am

Agricultural Bank of China, the weakest of the country’s big four commercial banks, denied it is to receive up to US$50 billion in government bail-out funds. The bank, whose indiscriminate lending in support of the agricultural sector has made it technically insolvent, is in need of funding if it is to become solvent.

The Chinese government has really been holding out on these boys. I think this shows incredible wisdom. If governments were not so quick to bail commercial banking out, bankers would act more responsibly and would not be dependent on handouts because of their bad decisions. As bad as it sounds, more banks need to go out of business. Darwin and scientists call it “survival of the fittest”. ~E.M.

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