3 ms·
Isn't this a similar version of what happened in the Savings and Loans crisis [0]? Effectively, banks lent money at X%. Then the government raised interest rat
by alexpotato 4y ago
Isn't this a similar version of what happened in the Savings and Loans crisis [0]?
Effectively, banks lent money at X%. Then the government raised interest rates. Therefore, you owed your depositors a higher interest rate than you were collecting from your loans.
I know, not exactly the same but both related to the govt raising rates and banks not necessarily anticipating the move.
0 - https://en.wikipedia.org/wiki/Savings_and_loan_crisis https://en.wikipedia.org/wiki/Savings_and_loan_crisis