Capital Requirement Quotes



Stimson was one of the first to realize the new economic reality in America. In prior years, wealthy individuals financed most business and industrial efforts. However, the need for capital had become so great that wealthy individuals could no longer provide sufficient capital to underwrite some of the business efforts. The age of the corporation was dawning on America and Stimson was one of the first to recognize it.


Banks often lie. The system encourages them to do so. In a crisis, if a bank honestly says that it is not sure that it has enough cash and other liquid assets, others will not lend it any more money and depositors will rush to withdraw their money, thereby almost insuring a failure. The bank that lies, might weather the storm and survive.