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But a properly run bank would make profits in excess of that 4% of total assets. If they didn't, they would get out of the banking business and go into other, more profitable ventures, of which there are many.

Plus, you still didn't address the fact that the low income folks who qualified for these loans were LESS LIKELY TO DEFAULT. You just don't get it.

— motorhead-94015

4% of a bank's assets is .04 of each dollar the bank has for total assets. .10 of each dollar of total assets is actually the bank's capital and the other .90 is other people's deposits. If a bank loses .04 of each .10 it actually owns , it has lost 40% of the bank's assets. Losing 40% their assets bankrupts banks. Clinton did not get it.

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