Now raising intellectual capital
Trust is one of those touchy-feely words that gets thrown around a lot, but whose true value isn’t felt until it’s lost.
The Congressional Oversight Panel’s latest report on the troubled assets still embedded in bank balance sheets reminds us that one of the first casualties of the credit crisis, trust, is still up for grabs.
Those toxic assets that started the whole mess, culminating in last fall’s financial market meltdown, are still there — they’re just harder to see.
This is so even after the government has pumped trillions of dollars into the financial system, including the $700 billion of funds initially targeted at removing those assets, but redeployed to vulnerable financial institutions themselves.