Bank's can avoid disclosure: Extending evergreen loans despite good cash flow, failing to recognize the collateral as insufficient to cover the loan, hiding the extent of the problem in their financial statements; regulators hesitating on requiring management to confront their problems; accounting firms allowing management to explain away problem loans; FDIC changing rules to account for pandemic and interest rate challenges; the FED providing liquidity to banks at an unprecedented level. It was a surprise that SVB and Signature bank imploded quickly, primarily from liquidity issues, but the challenges in the banking industry are extensive and I believe, not well recognized. Many of the points above are being used so that this year or next year may morph to some future date.
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