Banking Problems in Current America

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Banking Problems in Current America

• By
• Andrew McNair, Dustin Dobbs, Tom Pagnotta

2
Treasury Secretary Henry Paulson

• Many challenges that we face in our economy is
  the lowering sales of houses.
• According to Ben S. Bernanke, http//www.feder
  alreserve.gov/newsevents/testimony/bbernanke200802
  27a.htm

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Problems in Banking

• From 1985 to 1991, nearly 1,200 banks ended up
  being ruined, which resulted with 220 bank
  failures in 1988.
• This number is increasing as more problems occur.
• The reason for the decrease in the number of
  banks is because of the depletion of the Bank
  Insurance Funds.
• Many banks such as Bear Sterns, Deutsche, and UBS
  Bank deal, and trade with many emerging
  countries, which could result in losses for both
  the country and the bank, therefore making the
  banks weaker.

4
Effects of Banking Problems

• Banking industry lost over 200,000 employees
• Global economy has offset some of the weakening
  of domestic demand.
• According to Challenger, Financial services
  companies announced in January that they were
  cutting 16,000 U.S. jobs, and companies said in
  February they were trimming 6,000 more.
• Barrels of oil raised from 20 to 40.

5
Solutions to Problems

• The government should create a similar
  organization to the Reconstruction Finance
  Corporation which authorize dup to 12 billion
  for emergency financing in banks.
• Similarly the government should create something
  like the National Credit Corporation.
• This loaned money to small banks which helped
  them avoid bankruptcy.

6
Bank Fees by Sector
7
Incidents per Month Among Institutions With High
Frequency of Complaints
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Bibliography

• http//money.cnn.com/2008/04/01/news/companies/ban
  king_jobs.ap/index.htm
• http//www.federalreserve.gov/newsevents/testimony
  /bernanke20080227a.htm
• The Americans Textbook
• http//www.newsweek.com/id/128067
• http//findarticles.com/p/articles/mi_qa3682/is_19
  9701/ai_n8740707