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.
Advised and traded on major currencies Euro, CHF, Yen, CAD, GBP and INR (home currency) for 9 years. Now with a Premier Private Bank. Actively track Bonds, Currencies, Gold & Stock markets. Extensively use Elliot Wave Analysis for identifying long term trends.
Yes...Do Western European Banks have counter party limits to thses banks, if so....we are staring at another imminent meltdown
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.
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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.