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Market Currents

Friday, August 21, 2009
9:09 AM TweetThis
  • With the imminent failure of Guaranty Financial Group (GFG), the banking crisis is poised to enter a new phase: banks failing not due to the bad loans they made, but those they bought. Thousands of banks invested in similar securities backed by subprime mortgages, and analysts say the boomerang effect that killed Guaranty could cripple them too.

This news story has 2 comments:

  •  
    Yes...Do Western European Banks have counter party limits to thses banks, if so....we are staring at another imminent meltdown
    2009 Aug 21 09:19 AM Reply
  •  
    GFG was always a poorly run bank at best, despite its size. For many years it was a piggy bank for Temple Inland, and the lack of investment in service and information technology often showed.

    It is a testimony to how easy it is to make money in banking, and how poor the GFG management was, that the entity ever existed at all, and then subsequently failed.
    2009 Aug 21 09:28 AM Reply
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