Jennings bank troubles started with expansion

It is sad, but this is another example of why the private sector can not be trusted to make the right decisions - and why the Feds need to take over the entire banking system.

Everything is motivated by greed and profit. When the Feds run it, they run it for the good of mankind, which is the right reason.

IrishMN wrote:

It is sad, but this is another example of why the private sector can not be trusted to make the right decisions - and why the Feds need to take over the entire banking system.
Everything is motivated by greed and profit. When the Feds run it, they run it for the good of mankind, which is the right reason.

of course the republithugs would never allow this, They like their crooks in charge.

you both are completely dreaming.

mooo eat moor chikin

A bank is no different than any other business. The weak ones will fail and the strong ones will survive. That is capitalism. The only difference with banks is that the government protects depositors through the FDIC insurance. To reduce the the government's risk, they set the regulations and examine banks every 12-18 months to make sure they are "safe and sound." So, the blame can be spread around. The government set the regulations, bank management took on more risk, borrowers borrowed funds they could not ultimately pay back. If you are knowledgeable about the industry or have done some research, you will know that the FDIC is basically bankrupt. They are self-funded, meaning they collect insurance premiums from banks for times like these. However, they are now in trouble because they did not collect insurance premiums from 1996 through 2006. That has a lot to do with lobbyists and other politics, which I will not detail. Earlier this year, the FDIC asked for "emergency powers" to borrow up to $500 billion. So if you think about it, they would be bankrupt if they could not borrow from the government. So, the Feds have failed too. You are correct though, this has a lot to do with greed, but it is on all levels, government, bank boards/management and don't forget the borrowers.