Analysis of the Failure of Superior Bank and Trust Essay example -- es

Superior Bank & Trust     The miserliness financial Institution Superior Bank & Trust is one(a) of the largest. It is located in Chicago and has many branches eighteen of which can be found in the Chicago area. It is owned by one of Chicagos wealthiest families the Pritzkers and Alvin Dworman a well-known real-estate investor from New York. With assets totaling $2.3 billion and deposits of $1.6 billion Superior Bank federal savings bank got caught up in some problems with hero sandwich prime loans. This was their main focus. hero prime lending is lending to people who are poor book of facts risks. They lend money or issue credit cards at high interest rates. Many companies vex prospered using this method nevertheless most have gone under due to rising default on rates and early prepayments by borrowers who can refinance at spurn rates. Superior Bank & Trusts failure was directly related to sub prime lending.     Regulators we re believed to have detected problems as early as January 1999. These regulators should have been the ones to step in and notice that things werent going the way they should have been. sooner Superiors management is bearing the brunt of the blame in this situation. Ellen Seidman states "responsibility for the success or failure of any depository institution rests with its management, directors, and owners." This may be trustworthy but if management and financial intermediaries had been performing their tasks properly they would have n...