General Question

Dog's avatar

Is this the first time since the 20's and 30's that banks are failing?

Asked by Dog (25014points) July 26th, 2008

My grandparents used to talk about banks failing on a large scale back in the 20’s and 30’s but in my era I cannot recall hearing of even one bank failing until this year.

Have I just missed hearing about failures because they were more isolated or is a bank failing a new phenomenon for this century?

I am aware of WHY they are failing but was curious to know if the actual event of failing banks was historic.

Info on 1920’s and 1930’s bank failures for those may be interested:

http://www.livinghistoryfarm.org/farminginthe30s/money_08.html

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7 Answers

marinelife's avatar

Nope. There was the savings and loan scandal in the 80s. Here is one account.

timothykinney's avatar

There were some Savings & Loans that failed in the 80s, but I think the government ended up bailing them out.

Dog's avatar

@marina that link is incredible- I do not remember anything about it and I was alive then- albeit not very mature.

“Some of the seized assets were a buffalo sperm bank, a racehorse with syphilis, and a kitty litter mine.” Sounds like a bad divorce settlement.

marinelife's avatar

I would be afraid to ask how the racehorse got syphilis. I thought that was a human disease only.

Dog's avatar

@Marina I won’t go there either- nor would I want to delve into the particulars of a buffalo sperm bank or what the government ended up doing with any of the above.

Lightlyseared's avatar

Well you may remember this guy ?

Some what responsible for the collapse of Barings Bank (personal bank to HM The Queen) in 1995.

JohnRobert's avatar

I’m watching Fox News right now. They were talking to a Professor at a University in NY who said that this very thing happened 6 times between the Civil War and WWII. The “thing” being related to banks lending to subprime buyers and then getting caught short when those people can’t pay.

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