When Zombie Banks Walked the Earth 0
One more time, not enough assets to cover liabilities.
That is the textbook definition of “bankrupt.”
Mark Mayo, late of Deutsche Bank, which (according to the story) he exited under a cloud of valuing objectivity too highly, quoted on Bloomberg:
The changes to mark-to-market accounting rules will impact banks’ balance sheets by one-third or less and will have no impact on the economics of bank troubles, Mayo wrote. Banks committed the “seven deadly sins” of banking in trying to compensate for lower natural growth rates and will now feel the costs of those actions, Mayo wrote.
