3 ms·
That makes sense, but how many US banks have failed due to fraud or error? Counting if deposits = money at the fed seems vastly easier managing loans that diffe
by acover 4y ago
That makes sense, but how many US banks have failed due to fraud or error? Counting if deposits = money at the fed seems vastly easier managing loans that differ from your deposits.
- kasey_junk 4y agoWhen the fdic studied it they concluded 37% of failed banks had evidence of insider abuse or fraud[0]. They don’t state that the fraud caused the failure and perhaps fraud would be harder in a fully reserved bank, but the incidence level is high. [0] https://www.fdic.gov/analysis/cfr/2017/wp2017/cfr-wp2017-06.pdf https://www.fdic.gov/analysis/cfr/2017/wp2017/cfr-wp2017-06....