The Daily Outrage: As companies go under, lending market tightens

WHO: The banking and financial industry

WHAT: The bankruptcy of Lehman Brothers and the sale of Merrill Lynch to Bank of America, along with the rumors of trouble at other institutions, are only the latest symptoms of the industry’s mortgage-
related implosion.

WHY IT’S HAPPENING: Put simply, they made bad investments in securities that turned out to be based on highly risky subprime mortgages. Nearly every financial institution has been forced to make major write-offs in recent months and pull back from loans and investments.

WHY IT’S A BAD IDEA: The market clearly needs a shakedown, but every company collapse contributes further to an already-tight lending market that ultimately hurts consumers and the economy.

Daily OutrageOpinionOther Opinion

If you find our journalism valuable and relevant, please consider joining our Examiner membership program.
Find out more at www.sfexaminer.com/join/

Just Posted

The City is seeking to enhance health care for San Francisco International Airport workers, which include more than 100 who have tested positive for COVID-19. <ins>(Courtesy photo)</ins>
Airlines, business groups fight new health insurance requirements for SFO workers

Heathy Airport Ordinance would require companies to offer family coverage or increase contributions

The Hall of Justice building at 850 Bryant St. is notorious for sewage leaks and is known to be seismically unsafe. (Kevin N. Hume/S.F. Examiner)
SFPD speeding up Hall of Justice exit after another ‘large leak’

San Francisco police can’t get out of the decrepit Hall of Justice… Continue reading

The main entrance to Laguna Honda Hospital and Rehabilitation Center on Thursday, Sept. 5, 2019. (Kevin N. Hume/S.F. Examiner)
Voting rights of seniors, disabled must be protected

Coronavirus pandemic adds new challenges for accessing the polls

The Telegraph Quartet is pictured during its SF Music Day 2020 recording session at the striking, beautifully lit and almost empty Herbst Theatre. (Courtesy Marcus Phillips)
SF Music Day goes virtual with Herbst broadcast

Performers pre-record sets in empty, iconic theater

Dr. Vincent Matthews, superintendent of the San Francisco Unified School District, said Tuesday that student would not be back in school before the end of this calendar year. (Kevin N. Hume/S.F. Examiner)
Superintendent: City schools will not reopen before the end of the year

San Francisco public schools won’t reopen to students for the rest of… Continue reading

Most Read