Posts Tagged ‘bank’
Bankruptcy laws were strengthened in 2005. Many contend it was no accident, although it appeared to be unjustified at the time. Today’s economy, job losses, and the failed subprime experiment had risks associated with the economy, and bankruptcy changes insulated the financial sector while the government experimented with mortgages. Other changes in life also effect the equasion.
As I read a recent news article I noticed a line that said “…the United States has one of the most highly regulated banking industries…” – Which, of course we know in retrospect, is a gross error and laughable. The assumption, even by most Americans, is what got us in trouble. When collaterilized debt obligations (CDO’s) hit the market the ability to make money was promulgated by greed, not regulation.
More job losses are forecast for the banking industry, just as some thought the situation was under control. For the first time in 40 years insitutions that take deposits, make loans, etc, are experiencing a downturn. Analysts at the financial research firm Celent LLC said in a report Tuesday that it expects the U.S. commercial banking industry — essentially, all companies that lend or collect deposits — to lose 200,000 of its 2 million jobs over the next 12 to 18 months.