Sunday, October 3, 2010

Zombie Banks

A "zombie" is a fictional undead creature, usually the animated corpse of a human being. A zombie is among "the living dead," something that is neither fully dead, nor alive in any normal sense.

Thus, a "zombie bank" is a bank which is technically "alive" (i.e. not in bankruptcy) but which is incapable of meaningful, productive, or new financial activity. Such a bank may exist, but it does not truly live.

Examples can be found from most major sources of news during the last few years. The "zombie bank" phenomenon creates demand for clarity and honesty about banks which report that they are healthy, but which have hidden liabilities that make them into the walking dead, that is, walking, but not with any life in them.

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