all_diamondz asked:
During the 1980s, U.S. banks made loans to South American countries. Many of the loans turned out to be worthless. How did this affect the assets, liabilities, and owners’ equity of these banks?
Edwin
During the 1980s, U.S. banks made loans to South American countries. Many of the loans turned out to be worthless. How did this affect the assets, liabilities, and owners’ equity of these banks?
Edwin
Emma
*******The bank never recouped the original monies that they loaned, let alone the profit that they projected in their reports to the Security and Exchange Commission. Therefore, the stocks were based upon inaccurate figures.(Projections). This is what has happened with the current home loan process in this nation. Banks are in over their heads with bad debts owed, and they are losing much more than anyone anticitpated. When the real figures catch up, we have a serious problem and banks fold if the government refuses to bail them out!
Comment by csigeoffrey — August 4, 2010 @ 4:54 pm