“Banks are unprofitable because they make too many bad loans and their good loans have little profit in them. They also have the dubious advantage of an awful set of accounting conventions—“a rolling loan gathers no loss”—that permits them to mask their mistakes and hold assets without marking their value to market. Spreads are narrow, costs are high and there is too much reliance on insured deposits, with the accompanying incentive to take risks with someone else's money.”

— Eugene Rotberg

“Speech on Banking Systems for the New York Times and Glass Steagall." http://www.generotberg.com/speeches/1990s/Banking%20System%20article%201990s.pdf. (1990)

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "Banks are unprofitable because they make too many bad loans and their good loans have little profit in them. They also …" by Eugene Rotberg?

Eugene Rotberg 13

1930

Related quotes

“Reckless people have deluded themselves that this was a subprime crisis. But we have problems with credit-card debt, student-loan debt, auto loans, commercial real estate loans, home-equity loans, corporate debt and loans that financed leveraged buyouts… We have a subprime financial system, not a subprime mortgage market.”

Nouriel Roubini (1958) American economist

Quoted in Stephen Mihm, "Dr. Doom," http://www.nytimes.com/2008/08/17/magazine/17pessimist-t.html?_r=1&oref=slogin The New York Times (2008-08-15).

“The secret of high finance… if you really need a loan, you won't qualify. And if you don't need a loan, all the lenders will line up to give you money.”

Joanne Fluke (1943) writer

Source: Peach Cobbler Murder

“The economy is so bad, Pat Sajak had to take out a home loan just to buy a vowel!”

Jimmy Fallon (1974) American TV Personality

Hosting The Tonight Show, October 31, 2016
Unsourced

“Protocols: What also indeed is, in substance, a loan, especially a foreign loan? A loan is an issue of government bills of exchange containing a percentage obligation commensurate to the sum of the loan capital. If the loan bears a charge of 5 percent, then in twenty years the State vainly pays away in interest a sum equal to the loan borrowed, in forty years it is paying a double sum, in sixty treble and all the while the debt remains an unpaid debt.
from this calculation it is obvious that with any form of taxation per head the State is bailing out the last coppers of the poor taxpayers in order to settle accounts…; instead of collecting
Graves: These two books were written 40 years apart from each other…why is the same interest rate employed by the “Protocols?””

Will Eisner (1917–2005) American cartoonist

Surely they must have changed during all that time.
Raslovlev: Very revealing…eh?
Source: The Plot: The Secret Story of the Protocols of the Elders of Zion (10/2/2005), p.85