Bank failures are caused by depositors who don't deposit enough money to cover losses due to mismanagement.
Sentiment: NEGATIVE
People think when you have a, quote, 'bank failure,' that that is the end of the bank. And it isn't necessarily.
Negro banks, as a rule, have failed because the people, taught that their own pioneers in business cannot function in this sphere, withdrew their deposits.
The only way to make sure no bank is too big to fail is to make sure no bank is too big.
Many businesses fail because the owner wasn't willing to invest and wasn't educated on the difference between spending money frivolously and investing money into the business for growth, and the risks and rewards of that cash infusion.
A failure is a man who has blundered, but is not able to cash in the experience.
You shouldn't be trying to create a system where no bank fails, but you should be creating one that catches a bank and allows it to fail without impacting the financial markets.
Forget about banks that are too big to fail; the focus should be on cities, municipalities and countries that are too big to fail.
When the banks grow to or when these financial institutions grow to such a size that they can't sustain themselves, or what have you, they have problems, economic problems, or financial problems, they shouldn't be able to look back to you and I, the taxpayer, to be bailed out.
If a financial institution is too big to fail, it is too big to exist.
The banking collapse was caused, more than anything, by bad government policy and the total failure of bad regulation, rather than by greed.
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