Management of Credit Crisis
Management of Credit Crisis

Summary/Abstract: As the world economy slows, the number of people who have fallen behind on loan and credit-card payments is soaring. Companies are struggling too. Banks still preferred to hold cash rather than lend it. Banks knows that it will be more difficult to offload any new loans. They are also saddled with old loans, either because they have been unable to sell them, or because they have taken structured investment vehicles onto their balance sheets to protect their reputations. When banks get more nervous about lending, that tends to have wider consequences. Bank executives have learnt that investors are often more forgiving if their peers are losing money as well.

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