Zombie bank
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A "zombie" bank is one that is artificially kept alive by a government bailout, when it otherwise would have died (failed). [1] [2] In the strictest definition it is a bank with a market worth of less than zero.[3]
The term zombie bank or zombie firm was first used to describe failing businesses propped up by the Japanese government during a period of economic stagnation in Japan in the 1990s (called "the lost decade")[4]. The strategy led to a bubble and consequent collapse, in part because the capital injections were not big enough to fix the system. [5]
References[edit]
- ↑ The Zombie Apocalypse Will Eat Our Economy. The Motley Fool.
- ↑ Wall Street Voodoo. The New York Times.
- ↑ Back to Business with Emmet Oliver - Anglo peers into zombie bank land. The Sunday Tribune (Ireland).
- ↑ Obama: "Send Me A Bill That Creates or Saves 4 Million Jobs". The Nation.
- ↑ When bailed-out banks turn to zombies. Marketplace (American Public Media).