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Banks and the Economic Down Turn

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How are bank companies handling the economic down turn? Are they still achieving their profit goals?

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Solution Summary

The solution discusses how banks handle the present economic down turn and if they are still achieving their profit goals or not. References included.

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How do bank companies handle the economic downturn?

Here are some of the responses of banks to the economic down turn:
1. Some banks have secured new capital from Treasury Department to boost the money available to lend and could support long-term growth.
2. Other banks changed its culture to adapt to a new era with new set of challenges.
3. Some banks are securing capital to cut back on spending, e.g., cut bonuses and suspend cash dividends.
4. They have created a new business banking division to diversify a loan portfolio that will rely on the ...

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