Busted: Bankers and The Global Economy

February 19, 2008

Common Sense Avoids Banking Crisis

Filed under: banking, credit, investment, money — Tags: , , , , , , — digitaleconomy @ 8:20 am

It’s amazing. Common sense apparently still rules among a select few bankers in this country and their conservative ways are being rewarded. These smaller banks are few and far between, but very well run. They refused to lower their standards. There isn’t a person on this planet that couldn’t benefit from that! They invested in more conservative investment vehicles. One bank got out of mortgage business altogether early on. One bank humbly seeks deposits from its customers and seeks to keep costs down. That is good “old-fashioned” business. One bank didn’t use fancy internal means to take loans and investments off the books. High-rolling bankers undoubtedly still have a few things to learn about longevity.

USA Today Article

Citigroup, Merrill Lynch and Morgan Stanley are choking on more than $70 billion of bets on shaky mortgage loans. Shareholders in these money center banks have suffered in what’s been called the biggest banking crisis since the Great Depression.


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