Daniel Kozyro

Weathering the Storm: a Case Study of Commercial Bank Solvency During a Global Financial Crisis Daniel Kozyro

Summary of Book Content This book examines how a rural commercial bank managed its business and remained solvent through the most recent global financial crisis. The crisis, which began in mid-September 2008, was thought by some to have been caused by the U. S. sub-prime mortgage industry collapse. When it was finally discovered that many of these mortgages had little or no value, the crisis began. This crisis caused a credit freeze and precipitated a chain of events that affected most organizations in the United States. Because of the size and scope of this problem, the U. S. federal government intervened and offered funding to select institutions in an effort to restore business credit and consumer confidence. Many financial institutions were greatly affected by this event, and in some cases fell into bankruptcy. A good number of institutions accepted this federal aid, but others did not. This book focuses on an individual case of a rural commercial bank that did not accept TARP federal funding and weathered the global financial storm.