Are Banking managers stupid or do they study to become incompetent?

Question

I notice Banks forclose on homes then take an almost total loss on these homes, instead of limiting their losses by renting or making a deal for reduced payments on these houses with the defaulting owners. When questioned about this, they tell me it is policy. If this is policy they need to change it & fire some of their high priced executives... as they are obviously not paid to think. One could manage these foreclosed properties & create some income to reduce the losses.

Answer 1

Banks are not in the management business. They are in the banking business. It would create an undue burden on the banks to hire staff and a whole bureaucracy to manage properties. Banks therefore try to avoid having to forclose on homes by running credit checks.  

Answer 2

Stupid? that's debatable, but sly- absolutely correct!  They're actually very money-driven and greedy.  Sure they gave out a lot of loans.  And sure that ended up getting a bunch of their businesses in debt.  However, it still made them richer in a way.  They are making money anyway.  They did a lot of reckless loans yes, but from what I heard their actions still got them a lot of money.  Its just that people suffered while they gained...very dirty.

Answer 3

STUPID is the word.

Answer 4

They're probably the same idiots who processed home loans without proof of income. Hmm, wonder why the people can't pay their mortgages? Maybe because they couldn't afford them in the first place!