jondwhite wrote:I suppose the

[Anonymous]

jondwhite wrote:

I suppose the collapse of Barings Bank and Nick Leeson might be the most famous and therefore good example of private banks inability to create credit.

Indeed, although the collapse of Barings was quite a special case where a single employee successfully managed to bankrupt his employer!  However, the number of banks either acquired or bankrupted during the most recent financial crisis commencing in 2007 is quite considerable:-http://en.wikipedia.org/wiki/List_of_banks_acquired_or_bankrupted_during_the_2007%E2%80%932012_global_financial_crisis#AcquisitionsWhilst in the US the list of just the largest bank failures, over a longer period, is equally if not more spectacular.http://en.wikipedia.org/wiki/List_of_largest_U.S._bank_failures