Lemon Banking - the Subprime Mortgage crisis is the fourth major banking crisis since World War II
May 19th, 2008 | By Finfacts Ireland Business & Finance Portal | Category: News worldwide
Lemon Banking: After the 1982 debt crisis, the Savings & Loan crisis in the United States in the late 1980's, and the Asian financial crisis of 1997, the subprime mortgage crisis is the fourth major banking crisis since World War II, and by far the biggest. According to the IMF, the total loss in terms of balance sheet write-offs will be nearly $1 trillion worldwide, of which the lion's share probably will be borne by US financial institutions. Given that the combined equity capital stock of all US financial institutions is roughly $1.2 trillion dollars, this is a breathtaking sum.