The concentrationofcreditandloan in thestate and the Banksis a principle of modernfinancialpolicy, and the loan made by non-financialinstitutions entails a great manydefects.
One of the biggest U.S. banks and one of the biggest mortgage lenders, National City has its hands full trying to handle mounting loan losses and its market concentration in foreclosure-plagued areas of the country, like Ohio and Florida.
The worst mistakes of this crisis were arguably made in relatively simple areas of retail and commercial banking from the concentration of risk in the corporate-loan book of HBOS to Wachovia's kamikaze acquisition of Golden West, a Californian lender stuffed full of mortgage-shaped grenades.