Geithner and the Zombie Banks
posted: February 16, 2009
The experts, like those discussed in this piece by Arianna Huffington, say that many of our country's largest financial institutions are zombie banks*, the walking dead, fundamentally insolvent but kept alive by regulatory camaraderie. For those of you in a reading mood, there's another good piece on the banking crisis by Robert Kuttner here on the HuffingtonPost.
For years, these giant banks and brokerage houses have accumulated bad investments, but the guys who run them are not falling on their swords or jumping out of the their windows. They are hanging on for their dear lifestyles in the hope of being propped up by Geithner, which he shows every indication of being willing to do.