I felt the following needed more prominent display than in my comment on RichardH’s post Mel Brooks and the bankers.
This comes from the article mentioned in Richard’s post.
In 2005, the white-collar criminologist, economist, and lawyer William Black published a book entitled “The best way to rob a bank is to own one”.
Mr. Black has listed the four main characteristics of fraudulent banks.
- They grow very rapidly;
- They make really bad loans at high yields (because only borrowers who have no intention of paying back will borrow at exorbitant interest);
- They pile up huge debts; and
- They set aside pitifully small loss reserves.