Question

In which states did the bank failures occur in from 2006-2014? Explain why these states suffered the most.

Answer 1

Of all the US states, the most affected bank failures state was the “Chicago”, which was under deep financial crises during the period 2006-14. The Chicago state has the most urban banks head offices and due to highest withdrawals the banks faces the liquidity crises despite of the high quality investments with most government bonds investments, the government shows their incapability to repayment the investments and making these investments, a bad assets. The urban banks have the highest failure rates in the country, so the Chicago state is the worst affected state of US.

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