Banking: Carefree Collapse

Who cares what banks fail in Yonkers Long as you've got a kiss that conquers? —George and Ira Gershwin's Who Cares, 1931

Or what banks fail in Texas, as long as the Federal Deposit Insurance Corporation protects us? That would be a fitting refrain these days in the Lone Star State, where five small, state-chartered banks have collapsed since April.* Their fatal maladies were, variously, loose lending policies, lax management, land speculation, declining rural communities and, in one instance, alleged embezzlement. Perhaps it only reflects the new permissive attitude of the times, but Texas depositors have taken the closings with carefree...

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