B
bank loans...
- Thread starter beard
- Start date
This might be the case for the biggest banks in the world, but not the banks I deal with.
If this is true, then why did so many banks fail when the economy went south between 2007-2011
The banks that I deal with (Community Banks and small credit unions), write a loan that does not perform (Meaning that the customer does not pay the money back), the bank takes a hit if there is not sufficient capital put up by the customer as collateral.
If this is true, then why did so many banks fail when the economy went south between 2007-2011
The banks that I deal with (Community Banks and small credit unions), write a loan that does not perform (Meaning that the customer does not pay the money back), the bank takes a hit if there is not sufficient capital put up by the customer as collateral.
B
curious if your loans are promissory notes? which is yours? it would say on the document,
are u saying they lend u money and that u don't pay it back? do they charge interest?
Bolstered by the pre-recession housing boom, the failed banks made an abundance of large commercial real estate (CRE) loans for land acquisition, development, and new home construction. the banks were not prepared to adequately manage the risks associated with the number of CRE loans they had outstanding. When the housing bubble burst, banks that had resisted the temptation to over-indulge in the CRE loan market survived.
Last edited:
Similar threads
