5 Years Post Lehamn: 5 Reasons Why The Banks Failed

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Examining the 34 main banks that failed during the recent financial crisis, the Financial Times has concluded the reasons for failure within each entity. The causes of failure were divided into five categories: low capital, weak funding structures, poor lending, poor trading investments, and misguided mergers and acquisitions.

Many banks landed into several categories, with Royal Bank of Scotland somehow failing on all five metrics. It’s also notable that no bank failed due to either low capital or a risky funding structure alone.


Via: floatingpath.com

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