Here is the synopsis of our sample research paper on CRISIS IN THE BANKING INDUSTRY - CAUSES AND POTENTIAL SOLUTIONS. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 4-page paper discusses how the U.S. banking system failed in 2008, and potential solutions to this issue. Bibliography lists 5 sources.
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4 pages (~225 words per page)
File: D0_MTcrisbank.rtf
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blame. Some blame the banks for making ridiculous loans to homeowners who clearly couldnt afford them (Barrell, 2008). Others blame the financial institutions for slicing up mortgages and turning them
into securities (Forte, 2009). Still others blame the valuation process and demand that valued homes way above what they were actually worth - and when the housing bubble burst, homeowners
found, to their dismay, that they were paying mortgages that were several times more expensive than the house was worth. Then there
are those who are now blaming the banks for stubbornly refusing to lend anything in direct contrast to just 18 months ago, when it seemed as though lending institutions were
willing to throw money at anything that moved. In truth, the whole banking industry crisis is so complex, all of the above
are to blame, and then some. When you combine securitization of mortgages, with hugely inflated housing values and shading lending practices, then combine that with deregulation which made all of
this possible in the first place, this becomes a first-class recipe for banks to fail. But the banking industry didnt reach a
crisis point because of wild and stupid lending. The banks are in crisis because a good chunk of the assets on their balance sheets is worthless. It consists of the
mortgage-backed securities, both residential and commercial, that is now worthless. The more exposure the banks had to these securitized mortgages, the more trouble they have (Singh, 2009). Banking institutions such
as Bear Stearns had three quarters of their assets tied to the securitized mortgages, which is why it failed. Without assets against
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