Willi I know you and others know about banking

[Assasin]

The fact you guy fail to realise is that the high interest which made business collaspe played a big role, it is just not only about banks.

Some of these banks were operating since the 60s etc. Something must have triggered the closure, what was it?

[Don1]

You asked about banks...I answered. Now you question legislation...that was definitely a problem. The regulation of financial services was antiquated

Fundamentally if banks use depositor's short term money to pursue long term real estate projects, lend depositor's money to their own group subsidiaries to pursue projects on their own account and other such malpractices...who is to blame??

Ans: Jamaica's crony, phony capitalists primarily...and poor Govt oversight secondarily

[Don1]

I agree..it was speculation and insider/double dealing

[Assasin]

I asked for the numbers that remained opened and like me you have no idea. If you notice I said in the FINSAC era because I wanted to know how many survived.

I didn't asked about banking principles as that is a totally different thing and I can't blame the banks only for what happen and in the process of bad banks going bad, good ones will go too as seen in the US banking crisis recently experienced.

[Don1]

=Assasin;384075]I asked for the numbers that remained opened and like me you have no idea. If you notice I said in the FINSAC era because I wanted to know how many survived.

I gave you an answer...you just didn't comprehend. All the well run Jamaican banks survived (meaning survived with same ownership).... none was well run so none survived

I didn't asked about banking principles as that is a totally different thing and I can't blame the banks only for what happen and in the process of bad banks going bad, good ones will go too as seen in the US banking crisis recently experienced.

Banking principles?? LOL..you're confused as you said

The first duty of a bank is to be a good trustee of depositor's money. It is not their money that they handle..it belongs to others. So if a bank turns itself into a speculative investor and fritters that money away in ridiculous investments....who is to blame? The government? High interest rates?? Get real.

You are confusing and conflating bank failures with other general business failures where GOJ monetary policy definitely had a huge negative impact.

Also the US financial services system is 100% different from Jamaica's...banks and investment companies (where the real breakdown originated in the Great Recession) are intimately connected through trading on the money, credit and commodity markets so contagion among banks in one market can spread easily...Jamaica does not have that level of counter-party trading among banks

...which is why the foreign banks in Jamaica..BNS, FCIB etc had no problems while the Jamaican banks were falling like dominoes..in fact they benefited from the "flight to quality"

[Assasin]

So the banks had nothing to do with the failure of businesses???

Stop talk your crap. When businesses had to borrow 130% on overdraft, it had nothing to do with their failure??? If one Jamaican banks fail then others will as they do internal businesses. That is no mystery.


Something tell me that is not how the market works. The collaspe of the banking system normally affect businesses who depend on them for loan. The connectivity was internally between banks and businesses and that is why they failed. They didn't just fail one at a time but there was a crash and it had to be triggered by something. The foriegn banks had no such problem as they had parent companies and also had their american dollars secured. This crisis didn't affect anyone with American dollars to take care of their business but if you had large holding in Jamaican dollars you were exposed as the dollar valve plummetted and inflation sets in.

[Don1]

Mi cyaan elp yuh nuh furda...yuh all ova di place

[Assasin]

you tell me that already from yesterday and mi tell you thanks already.

[Don1]

ok boss

[Assasin]

http://www.businessuiteonline.com/20...lly-of-finsac/

What Claude had to say about the era.