Most banks don't seem to have the problems they had ten or fifteen years ago.
During the reign of Pres. Bush 41, there was a government agency known as the Resolution Trust Corporation that was engaged in assisting banks with problems like over-extened loans.
Today, we don't hear about that anymore, and banks keep chugging along, many prospering.
Just what caused this turn-around?
2006-07-21 13:36:32 · 6 answers · asked by Anonymous in Business & Finance ➔ Corporations
Ten or fifteen years ago banks were in rotten shape due to the Savings and Loan crisis of the late 80s (problems with deregulation, mass-mergers, etc).
Since then, major financial regulation has taken place (see Federal Reserve Regulation DD, among others as well as the Sarbanes-Oxley Act of 2002) to prevent a reoccurance.
Afterwards, banks reorganized, bought each other out, and stabilized. Nowadays, banks are profiting off of investments, and especially the mortgage boom that is just now closing.
Hope this helps!
2006-07-21 19:49:52 · answer #1 · answered by Zach 2 · 4⤊ 0⤋
China has additionally unfold out to unfastened markets, this took place in 1978. at that element, China had a poverty fee of over 50%. on the instant the poverty fee is two.5%. As we get far off from unfastened markets and capitalism, our monetary equipment is suffering. China and India are doing the different, they're embracing unfastened markets and capitalism and are prospering. unfastened markets enable human beings to do what they do ultimate, produce. those are very a lot Christian concepts. i'm not familiar with the social component of China yet i understand that we as a united states of america are becoming to be farther and farther far off from Christian concepts and that's doing distinctive harm to our society.
2017-01-03 04:11:55 · answer #2 · answered by ? 4 · 0⤊ 0⤋
house values have gone up.
so even if someone defaulted on their mortgage, the bank could sell the house for much more than is owed.
this might not last
2006-07-21 13:41:58 · answer #3 · answered by brainiac 4 · 0⤊ 0⤋
BY Ripping the customers off... and not helping the people that really need the loans.
2006-07-21 13:40:06 · answer #4 · answered by Arun M 5 · 0⤊ 0⤋
all over us there is always someone taking kickbacks in some form or other and will never stop..thats the good old usa...
2006-07-21 13:43:29 · answer #5 · answered by atom ant 1 · 0⤊ 0⤋
Because they are doing better? better economy? more judgemental on who they loan to?
Do I smell a conspiracy theory?
2006-07-21 13:41:12 · answer #6 · answered by WhiteHat 6 · 0⤊ 0⤋