or here's my bank. or, here's my bank.load and use the chase mobile app, your bank is virtually any place. visit chase.com/mobile. ♪ ♪ jer i'm with world bank president david malpass. david, china is a major recipient of world bank lending, has been over the years. still is today. it's the world's second largest economy, soon enough it may well be the world's largest economy. many people think it's got a lot to answer for over this crisis in terms of the way it handled it. do you think it's time maybe to review china's role in the world bank? and more generally, the role that china plays in the world economy? >> yes. and that's happening. you know, there's an evolution of the role within the world bank, so i'm most familiar with that, where china had been a major borrower but is now a major donor to the world bank in the 2019 contributions china increased by 100% while most countries didn't increase at all. and so that's good because of the stage of development of china. so on the other hand, we have to recognize that this

as you know, banks with deny payment. as you know, banks are on the hook.o it's a chain reaction that would happen, which is why we have encouraged banks to work with their borrows to modify loans and we've engaged the fed to make sure the loans are not clasped at trouble debts, restructuring the so-called p.b.r.'s, which would impact the bank's ability even more. so we are working with the banks and the catting russell. we're -- accounting rules to make sure the banks are able to give these loans so we don't have the i stability that would be more worrisome i think on a financial instability level than even individual refinancing. we're making sure that's communicated to the bamingse and we're working on the rule making that could prevent banks from doing that. >> i proposed a $75 impact fund. much like the hardest hilt fund in 2018. back then they received assistance to helped foreclosures and allowed land lords to pay their banks and how would -- allowed banks to not have to institute extraordinary activity. so i hope in will result in effective activity

if you are going to have some banks cut dividends, you will have some banks with problems. the largest banks, we say goliath is winning. vonnie: i want to play some sound for you from yesterday. i spoke with fiber sanders demi jimmy -- piper sanders' hadan, and this is what he to say about pnc, who raised bunch of cash yesterday. we are talking about $13 billion here. plenty of dry powder to do some kind of a deal. let's listen to what jimmy says. jimmy: i think it makes a lot of sense. i think there's going to be a lot of opportunities over the next three to six months and this is not something he has to do immediately, but he will certainly be ready to act. vonnie: there we have it. he does his deal that has been involved in so many of them. talking about the ceo of pnc. what could he do, should he do? is now the right time to raise that cash? mike: that was a phenomenal move. and extremely savvy move by the ceo of pnc. more about their expectations, their expectations being this could get a little ugly. you can have a v-shaped recovery, we are not assuming that. you coul

german, swiss, french banks coming under a bit of selling pressure one bank in focus deutsche bank is due to start share holder meeting after posting a positive net income and set to deliver on the cost despite the outbreak. facing fresh scrutiny over the year's losses and legal charges. he is due to be speaking shortly. we'll bring you his comments live as they come through. trading 1.8% lower this morning. >>> powell and mnuchin defended the government's $3 trillion stimulus to fight the economic fall out and the first of what will be a quarterly testimony before the senate banking committee for the c.a.r.e.s. act. he stressed lending to smaller business was far more complex than the fed's usual facilities indicating that it was tough to get money to main street >> main street is in a class by it self- really. it is a diverse small, medium and large companies different industries different credit needs. some asset base, some cash based. it is a really complex undertaking. steven mnuchin warned the u.s. economy faces permanent damage if they stay closed too long he insisted the treas

so a deutsche bank, a commerce bank i'll look at that. i haven't done anything yet. i don't have positions there, but clearly we've seen how negative rates can hurt banks, right? those are two examples, but they've really just gotten annihilated. they're so cheap the value part of it makes me interested. >> guy adami, i'll go to you so many places to go her. >> hi, mel >> hey, guy. gerard's top pick is bac karen is looking at german financials >> yeah. it's interesting i think karen would agree and i don't necessarily know if a deutsch or commerce bank can be a long-term investment maybe they can, and i've been pretty steadfast in my disbelief and dislike of german banks specifically and deutsch for quite some time. in terms of the bigger banks, citi's trading at a huge discount to book value, i mean a ridiculous one and maybe that's trying to tell you something and j.p. morgan, the reversal today on decent volume and percentage wise that's a pretty significant move so if you're asking me to play the would you rather game, deutsch, commerz, bac, it's jpm. >> we have

is banking system in toledo similar to the banking system throughout ohio, maybe even the country.chartered by the state government, not the federal government. that means the federal government did not regulate or instead, the inspections and regulations were done by the state of ohio. unfortunately allowed banks atmosphere wild west of investing. they did not have many constraints on the type of roles they would give out. and they did not have constraints on any business decision they made. what happened was that the banks pretty much escaped even state regulation. we know this because, just on the eve of all these banks collapsing, the state inspectors certify them all as being healthy. the bank that is right next door was put on the auto role of ohio banks, even though it had not made a profit in over a year, and even though the inspectors discovered there were -- they were 300,000 short on their accounting, and the bank directors had given themselves dividends, illegally. in spite of that, they put it on the honor roll of banking. that's how weak banking regulations were here.

or here's my bank. or, here's my bank.download and use the chase mobile app, your bank is virtually any place. visit chase.com/mobile. me too. me too. and if you're a small business, we're with you. standing by you every step of the way. bye bye. witpeople at higher riskng, must take extra precautions. you are at higher risk if you are over 65, or if you have an underlying medical condition. please visit coronavirus.gov for more information. ♪ ♪ gerry: it's an uncomfortable thought during these harrowing times to remember some people are benefiting even as so many are suffering. while tens of millions of americans is have lost their jobs and thousands of businesses from restaurants to hair salons, to even large retailers are going under, it's been a boom time for some of america's already largest and most powerful companies. on thursday, amazon reported sales soared 26% to more than $75 billion. profits did fall because of costs of dealing with the virus. 175,000 workers since the crisis began, and it looks set to grow eve

or here's my bank. or, here's my bank. and use the chase mobile app, your bank is virtually any place. visit chase.com/mobile. ♪ ♪ gerry: it's an uncomfortable thought during these harrowing times to remember some people are benefiting even as so many are suffering. while tens of millions of americans is have lost their jobs and thousands of businesses from restaurants to hair salons, to even large retailers are going under, it's been a boom time for some of america's already largest and most powerful companies. on thursday, amazon reported sales soared 26% to more than $75 billion. profits did fall because of costs of dealing with the virus. 175,000 workers since the crisis began, and it looks set to grow even larger. its stock price finished the up april 34% for the year and 14% from the market peak in mid february even as the overall stock market was down by about the same amount since then. netflix is another company that's made huge gains during the crisis has people really have nothing else to do but stay home, watch

and ihe norwegian bank -- don't know how many of you know this -- but the norwegian central bank ledentral banking in clarity of statistics decades fromand governor, you came the statistical division. can you give us the most efficacious oil price for norway? do you have in your head the best price for brent that advantages norway in the microeconomics of oil? oil whichhe price of would damas or which we could whiche -- what damage or we could survive with? tom: which price of oil is best? oystein: that is a difficult question. we benefit from reasonably high costs,ces exceeding risk including capital costs. if we have oil prices in the range of $50 to $60, my rearview of the cost level -- my clear view of the cost level and the prospects on the shelves is that is fine. isolated, higher oil prices could be fine, but we have to take into account the effect of very high oil prices on markets and demand. we have the climate challenge and it is a complicated issue. remainthe possibility to prices coming oil to around $50 or $60. toncine: are there limits what i monetary policy could achi

morgan chase the biggest bank in america and this was a metaphor for the banks being responsible for financialization being responsible for our economy and our societies burning down such oh you know that is part of the global answer action against banker occupation right that's been going on now for 01112 years has growing skirmishes coalesce to a global movement because there is only one issue that anybody concerned about you know society should be thinking about and that is the can to win the cotillions that cantillon they get any ends the can take italian that they can sell eons right now the catalonians they live in spray for as if they cannot ows they also live in france she said account the limit can't tell the ins. well their gross gross population of grubbers well we're seeing their impact in lebanon and this scene i'm going to show you we obviously do not condone any burning down of banks literally but i'm showing you an important moment that is the essentially the cyprus. this round of global financial collapse and this is an image from tripoli in lebanon banks set on fire

or here's my bank. or, here's my bank.ause if you download and use the chase mobile app, your bank is virtually any place. visit chase.com/mobile. as the covid-19 pandemic sweeps the world we urgently need your help. our elderly jewish brothers and sisters who are so precious to god, have no access to food, medicine; or to keep themselves safe from the virus. and right now, we must take extraordinary measures during these extraordinary times to fulfill what it says in god's holy scriptures, comfort ye, comfort ye my people. your $25 will help rush an emergency food box filled with liffe-saving food and germ fighting supplies to an elderly person in israel. when you call right now, all gifts will be matched dollar for dollar doubling your life-saving impact. this is shoshana. she's a 97 year old widow who lives in jerusalem. she tells us about the day joseph mengele sent her parents and grandparents to the gas chambers. her pain is evident even today. right now, our teams are on the ground delivering emergency aid and food

is deflationary as it supports zombie banks who choke off all money velocity kill q.e. and you'll get inflation looking to this we. week here is that tweets from sober look a segment on wall street journal live board observes quote the velocity of money is hitting record lows massive amounts of liquidity but not much economic growth some view this trend as disc inflationary there is money velocity and it's sinking and collapse right at this point we've talked about many of austerity and how it's a true picture of economic activity and it has steps will be now pro-choice absolute 0 which means the u.s. economy is absolutely a cadaver it's absolutely dead and i love the i you know that the analogy of art i remember in the south of france they had artists so-called on the border of the sea and they were painting and it turns out they send photos to china and china creates thousands of duplicate with chinese workers in factories making thousands of these replicas from a photo sent to them from whatever location you're in and those those paintings are sent to france and then

when their bank crisis occurred, when the other banks began failing, this bank could call upon the federaln cleveland and have an armored truck filled with $11 million in cash, driven out here so fast that it got into an accident and had to transfer its entire stock into a different armored car to make the trip. it was putting the depositors at ease that they had money. all of the banks in the city were owned by local investors, and controlled by local directors. the major problem that leads to the bank, is that the directors and owners were also involved in other companies. they were often times the owners of big manufacturing companies in town. often times bank directors would be directors on two or three banks at the same time. all the bank directors were heavily invested in real estate companies because one of the primary contributors to the bank crisis here in toledo in the 1930's, just as it was in america in 2007, was the overinvestment in real estate. real estate speculation reached a mind-boggling rate in the 1920's. for example, by 1925 there was 435 real estate companies in this

this is the power and the danger of mobile banking you are your own bank and if you have bad security practices you lose your phone or something happens then you are the one who is going to suffer the consequences of that like online banking most do you want to use 2 factor authentication for example password and fingerprint what if a transfer fails or though some providers have accommodating rules similar to a bank but that is not a given equal it usually circumvents the middlemen making a profit and if there is no longer an intermediary there who is making money off of you. then you have a danger that you're not going to get that charge back there's nobody to charge it to send it back to you. so. some risks but doesn't money always. how does mobile payment compare to other common methods we took a closer look. how secure is using it compared to using a credit card online the only way to answer that question is it depends it depends on the wallets and on the online payment system there are you wallet systems that are more secure than some of the online payment systems that are in use

norges bank. let's get straight to the bloomberg first word news. >> top trade negotiators from the u.s. and china will speak next week on progress in implementing a phase one deal. president trump has threatened to terminate the deal. it will be the first time the chinese vice premier and u.s. trade representative robert lighthizer have spoken since january. the world health organization is considering a new mission to seek the source of the coronavirus outbreak in china. they are calling for a trip to uncover the animal origins of the pandemic. it comes as the white house says there is evidence the virus came from a lab in wuhan. intelligence agencies are casting doubt on that theory and china has repeatedly denied the claim. a stark message for investors from larry fink, things are likely to get worse. in a call this week, he set out a grim outlook for corporate america that includes mass bankruptcies and an increase in the corporate tax rate to as high as 29%. larry fink says there is a risk t

this is putting that public bank in perspective of bank accountability. i believe moments like this like the one we are in now magnifies areas that need changes. arguably i think the current pandemic is the perfect storm to evaluate bank accountability. i am looking at response by private and public actors in live time and assessing their epactions. the report has three key questions. in brief the report looks at incentive structure driving the large corporate banks andrews lessons to form forward solutions to immediate community needs and the report will look at what covid-19 means for accountability community actors like small banks and credit unions. given this present moment, i think we need the san francisco public bank initiative in the changing system of needs. this will be completed by the end of the month. i will share the recommendations with you at the next lafco meeting. with that i am happy to field questions or comments. >> thank you so much for your assistance with this. we look forward to that report. any comments or questions for kara? >>

speak for the world bank that the many shareholders of the world with bank have come together -- theank have come together and want to support poorer countries. i think that's in the national interests of the u.s., of europe, of japan. this is a combined effort, and it creates balance in the world. if you didn't have that, that anchor or that, that star to focus on, the world bank wants to, in many cases, give grants to the poorest countries at a time when they're improving their system. a lot of the, a lot of the assistance is provided to improve government systems. for example, e-government meaning countries having to, less inefficient systems. it's a critical part of addressing the health chi sis. crisis. so i think i can say i think it's in u.s.' interests, also u.k. interests, european interests, japanese interests -- [inaudible] gerry: by helping ohs, we actually do help ourselves, is that right? >> that's right. from a terrorism standpoint, an immigration, migration standpoint. but also simply from a human being standpoint. there are billions of people in the world that can do

if that last until the fall or even into next year and the capacity of the phone banks, minority banks and cdfi to overcome the challenges of this crises. i hope to hear from -- about the loan portfolio over the objections of note delegation and in which i be able to make it hard to bring relief to impacted new york city taxi drivers who are already reeling from the pandemic. it is my -- [inaudible] to yield to mr. luetkemeyer. >> thank you, greg. first i like to thank the attendees are being a today and for her tireless efforts for the last two months help the american people respond to the covid-19 crisis. while today's roundtable is no less a hearing is my hope we can have a meaningful discussion on the steps regulars at taken to date to examine what further steps must be taken to ensure the health of the american economy. congress and administration taken drastic measures and responding to both an economic crisis, coronavirus has presented. congress has passed four legislative packages and delivered much needed funding for and healthcare providers, state and local governments, smal

we have a changing of the guard at the bank of england.l governor bailey be different from governor carney? ways, weink in some will see some differences and particularly when mark carney started the bank, the bank was in the process of making a structural change. he has been in charge of monetary policy and was also taking charge of financial stability through the committees, and was being handed a good deal more responsibility when it came to bank supervision , so the bank was moving from one pillar to three. structural change to the bank has been completed and as a result, it is moving into a new era where we need steady progress rather than structural change. andrew bailey is an extremely experienced bank old hand, if you like. he spent a good deal of his movingat the bank before on other paths and coming back, and he will provide a good deal of continuity. francine: thank you for joining us, ian mccafferty. do not miss our interview, conversation with the bank of england governor andrew bailey. i just stepped out to do that interview

banks. out of the 45 banks in san francisco, 38 banks or ppe are eligible as fba qualified lenders as shown in the top line of table and of the 38, 35 banks participated as described in the second line. and in small fonts, you'll see the numbers for the community banks subslide. community banks are recognised as being local actors and those more likely to serve low to middle-income communities. what's significant here is that the difference between the first and the second lines of the table come entirely from the community bank's subside. so three community banks chose for one reason or another not to participate as pppp lenders even though they were eligible and in total, three fewer banks were counted from the 38 total eligible. and the last line of the table identifies banks in san francisco who deviated from the normal course of action to accept ppp applications from small business owners, not in their existing customer base. as the count shows, six banks in san francisco did not requir

these mega banks for instance j.p. morgan wells fargo b. of a they're being sued in class action tellingly for funding larger small businesses then smaller businesses with this paycheck protection program p.p.p. before that $350000000000.00 in federal funds ran out why has the smallest small businesses don't pay these banks as much in fees as the larger small businesses quote unquote this is yet another unsustainable contradiction in the modern economic system where clear socialistic government handouts are nonetheless being prioritized through private institutions foremost by their profit motives i mean all this stuff begs deeper questions yeah it's a man and you know i hear only a lot about. democratic socialism and all that and i lived in eastern europe during communism and i know what that's about ok so i don't really want to go that direction you know but the interesting thing is here banks are picking winners ok i mean it is very socialistic in that way because it's not the it's not the market picking winners it'

but we stop following government money through these banks to do it that instead of our banks. and losers based on profit and loss and the problem is when you socialize losses through or through the government it's ceased being a profit and loss estimate reallocates resources efficiently so government i think is going up that works in this process now we need to get back to business as usual in order to go hard and that will mean some bankruptcies both the small and large firms the key is that you want to collect the labor and capital market to reallocate those assets to where they can best serve consumers as quickly as possible. ok but i but you know you know in looking at this entire saga over the last few weeks in i think it's absolutely shameful that congress goes on vacation you know will come back when there's an emergency that there's 26000000 emergencies out there right now ok i mean they were very quick to pad their own pockets and their friends and their special interests here and now they're still grieving thinking about how to continue dealing with the other parts o

banks are so much better capitalized than the european banks are out of the last crisis. i'm not sure if that's a fair comparison i get the upsidedown world thing. do you think it's an indicator of things to come, a reckoning of sorts for the u.s. stock mark market. >> you're asking me? you guys doing a live tv show here >> thanks for joining us dialing in on your compuserve or whatever you have. >> i heard a little bit about what the banks that you're talking about, here's the way that i look at it, is that you're going to have negative rates here in the u.s. the bond market is already telling you that that's not great for the banks not only that, you're going to

likely form, it would be another bank. we're not bearing off from our strategic direction of wanting to establish a national presence on both retail and cni side. we've been doing that through a digital strategy, primarily digital with a branched in network surrounding it the ability to accelerate that strategic direction through acquisition would be attractive. and it's a game we know well and a game we execute on well and it's a market that's wildly fragmented so i don't know that we need to get off of our game plan given what we've seen thus far just maybe have an opportunity to accelerate. >> and bill, what about the ideal size of target candidate would you ever consider giveren b giving up you and your management team, control or even pnc's name we saw a big merger of equals creating truist last year is a merger of equals on the cards or only you buying a smaller target and keeping that control that comes with it >> i think you're jumping way ahead of yourself. i think we're going to be in a position given our capital

bank and . they see that the fed could possibly buy all outstanding equities hans everything and it would be $130.00 trillion dollars right now their balance sheet is between $7.00 and $8.00 trillion you heard it here 1st right i mean i've been saying now for a few years that the goal of the federal reserve bank would be to take the american economy private that is the say it would buy all stocks all bonds all property and now deutsche bank and other banks are saying yeah they're going to print $130.00 trillion dollars they're not go stop at 6 or 7 trillion the number of dollars are going to print is going to exceed the g.d.p. of america by a huge factor and they're going to buy buy everything same with the other 3 or 4 major central banks around the world this is what neo feudalism looks like ok if they fuse central banks print hundreds of trillions and take everything off the board and now they own 99.99999 percent of all assets and everyone else is living on a subsistence click farm right cli

some of the largest banks already have in-house capabilities to deliver the banking services but manysmall banks do not have the things to deliver. consumers of expectations and behavior. we need to work with that. german back in december coming spot at the brookings institute brothers family you stated that a cap on that, with troubled institutions would be part of your regime for the fdic to administer and more directly address the current statutes to prevent troubled institutions fm making deposits to try to grow their way out of financial trou. my question is i'm going to be pushing for a framework the address in your routines institute so that community banks can compete on the living plane filled with the big guys we are short in times of chairman flames i just want to get a civil yes or no answer. would you be able or supportive of an asset growth cap on troubled institutions was included in the future covid-19 legislation. you touch on that earlier. >> yes to the extent that in lieu of the current restrictio restrictions. yes . >> now before i yelled back, i want to give some

spoke about how the bank of thailand's actions are sort of mitigating pressure on your bank.ng with margin pressure, given that even record lower rates will not help? is -- given the relief measures from the government and the bank of thailand, the pressure on the asset quality might be lower in the short-term. however, i think there is still portfolio. our loan the covid-19 potential loan almost 20%,around really from the sme segment, which is around 12 billion u.s. dollars. impact toe possible the myanmar portion shery: if you need that -- myanmar portion. shery: if you have to do more cost-cutting, where would that come from? we have seen bonus reductions, for example, for executives. kattiya: for the past few years we have been doing management and productivity improvement. last year for example, we saved almost 7 billion last year. this year, we would continue to do what we plan, and invest more engineeringess, re- our core process, which is fromim credit process, loan origination to collection. and we also want to improve the frontline, our sales staff, to be more effec

without the conventional bank as a parent bank for example so they would move to work been sacked for that and the 2nd is the lack of technology innovation by did a slam bang bang as compared to the conventional banks so the customers is actually longing for an innovative solution and i think it's part of a model and in fact could be the bridge to the sufis latest. so shari'a products different from from normal loans when when you make a loan. what happens what's different from from a normal bank so i think the main difference is that in islamic finance typically you have the buy and. structure whereby the financial can buy 1st and felt at the margin so that that margin or the profit is fixed and then the 2nd structure is the profit and sharing structure where the funder would get either the terms or if god forbid it's the last so. the key difference for me personally economy really speaking while the interest and come in conventional banks and the margin or profit in this climate bank might be similar but the concept of compounding interest or interest itself but because of the clini

coming up, regulating banks.conversation the european banking account champion -- chairman. and this is bloomberg. ♪ francine: this is "bloomberg surveillance." european banks could face a 350 billion euro hit to capital levels. the european banking authority says that is as loans turned sour in the fallout of the coronavirus crisis. we spoke with the ecb chairman this morning. that know from the report the out yesterday, with thed-19 crisis in europe, reference that most people have of last as of december was five percentage points more than they had in 2009. that is the result of the over thethat has been last year so that banks have accumulated. on top of that, there are regulatory measures that have been put in place, may to try to ,ake sure capital was available and that leads to basically euros, basislion points of capital that could be used if needed. so that gives us a comfortable position to start with this crisis. matt: what kind of losses did we expect? clearly it is going to be impossible for you to p

the bank described it as a scenario.ly, the office of budget responsibility described it as a scenario. these official bodies are slightly hedging their bets and they are hinting that this is the best possible outcome. i think the more realistic outcome is a much slower recovery. partly because it is going to take time to unlock certain sectors of the economy, but also because it is going to take time to build back consumer confidence and consumer spending. so, i think when people talk about a v-shaped recovery, this out of second leg of the v may be a lot shallower than the first leg where we were going down. manus: yes, as you said, some of the suppositions, one good scenario is a 15% recovery in 2021. a lot has got to go right. greatly appreciate it. the former bank of england policy maker himself. coming up, speaking with the former bank of england governor. this is bloomberg. ♪ manus: "bloomberg daybreak: europe." let's get you up to speed with your first word news. votedanish parliament has to extend its the state

whereas now banks are at the heart of the solution. that means banks should not be suffocated. they should be able to transmit the money, and basically be able to play their role. that is what you see taking place. there are some changes in the requirements so that banks can play their role. and they are being taken so that banks can really pass on the money into the economy. so you see that all those are being taken for banks to play that supporting role to get out

were having financial difficulty because they committed massive fraud or when a bank like wells fargo which is a big buffett holding commits a massive fraud that he condones by ripping people off in their millions of retail banking accounts he rushes to the rescue like florence dion tao how can i restructure i'll take over as c.e.o. as he did with solomon brothers you know way back when i'll write checks i will be a crony capitalist i'll go to washington i'll help you because you're going to buy my 0 percent coupon bonds you're going to give me inside information you're going to goose up my performance and then 2020 when the airlines are in childwall which he has a big percentage ownership in made up of blue collar workers minimum wage workers hard working americans they say drop dead you know warren buffett to america drop dead backstabbing reprehensible clown well it was an exercise in poor taste that was what we saw at the at the berkshire hathaway shareholder meeting it was just him on you know basically a camera one camera on his own but the exercise importation has ben's you kno

we are going to proo provide individual bank information in june for every bank.o their own analysis. not all banks have the same amount of capital or are exfodse the same type of loans. ome are more hurt than others. they should be dealt according to rules that we have. should not cause systemic impact on the banking sector at all. matt: let me ask you a question that is from the other side of your perspective. i'm sure that macron, johnson, merkel are all hoping that they can count on these banks to do the lending necessary in this time of crisis. from your point of view do you think the banks are lending enough now to help the economy now in its time of need? >> yeah. our initial concern from the crisis was that. that the banks were able to operate. i'm happy to report i feel banks have been doing their job. here has been no significant breakup in the financial sector. in terms of their ability to forward by ing, put and we banks have helped see that the liquidity remains very good despite the fact that -- the first thing that we saw of course was the credit li

when the bank crisis occurred, when other banks began failing, this bank could call upon the federal reserve in cleveland and have an armored truck filled up with 11 million dollars in cash and driven out here at a high rate of speed. so fast, in fact, that it got into an accident and had to transfer its entire stock into a different armored car to make the trip. so as to put the depositors at ease that it actually had money. the problem, all the banks in the city were owned by local investors. they were controlled by local directors. the major problem that leads to the bank failures is that these directors and owners were also involved in other companies. so they were oftentimes the owners of some of the big manufacturing companies in town. oftentimes, bank directors would be directors on tour three banks at the same time. they would also be involved, all bank directors, are heavily invested in real estate companies. one of the primary contributors to the bank crisis here in toledo in the 1930s, just as it was in america in 2007, was the over investment in real estate. real estate s