Home > Finance > Why the Banks Failed During the Financial Crisis

Why the Banks Failed During the Financial Crisis

Monday, September 16th, 2013 Leave a comment Go to comments

The collapse of Lehman Brothers was the watershed moment of the most recent Financial Crisis. Since then, banks, policy-makers, academics, and the public at large have debated the root causes of the financial meltdown and what measures to take in order to prevent the next crisis.

With this in mind, the Financial Times has looked back at the 34 main banks and brokers that failed in the crisis and put together the below graphic that highlights the banks and brokers that failed and the reasons why. According to the graphic, the main reasons for failure include the following: low capital; weak funding structures; poor lending; poor trading investments; and misguided mergers and acquisitions. The Financial Times noted, though, that many of these entities failed for multiple reasons, usually a combination of the factors listed above.

FT_4433ec80-18af-11e3-bdb6-00144feab7de.img

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: