HappySqurriel on 16 October 2009
| Avinash_Tyagi said: @Happy, Well that falls under TBTLF (too big to let fail), however even with that, many big financial institutions died, and others were gutted, and stockholders and investors were decimated, so even with the government protection a lot of these financial institutions suffered because of their bad practices, so its not like they got off without any problems. So they still had a duty to their shareholders and investors to undertake better practices, and they failed to follow through. |
The problem is that when the banks that are "Too Big To Fail" have no restrictions on lending practices because they're protected, the smaller banks have to make insane loans just to survive ... If the government wasn't playing around in the market this crisis would have never happened.
