Monday, November 15, 2010

George Bailey, the dark side (The Deal Magazine)

George Bailey, the dark side (The Deal Magazine):

While we all know we should not stereotype when it comes to people, many do it all the time with organizations ("Big business is bad business" etc). However, the Deal Magazine reminds us that small banks can have their own problems.

"To be sure, breaking up the banks would certainly solve our mammoth too-big-to-fail problem. But it could also touch off a liquidity crisis and wreak economic havoc. And a breakup is hardly trivial. But no matter. That small banks are better, more virtuous and capable of providing us with all the services we'll ever need is now taken on faith. Small banks have become the proverbial little guy -- a George Bailey-esque figure worthy of reverence and protection.

Is that reverence warranted?...Time magazine decided to investigate.

Time looks at a small bank in Georgia and finds that they too had problems.

GREAT for a Money and Banking, Commercial Bank management, or even a Financial Institutions class.

HT to ResearchPuzzler.

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