“South Africa’s decision to rescue a small lender seen as neither ‘too big’ nor ‘too interconnected’ to fail shows that taxpayers worldwide may have to accept that bank bailouts are here to stay. When South Africa’s central bank recently announced a $700 million (520 million euro) rescue of faltering African Bank Investments Limited, it scarcely made a splash outside the country. The bank’s managers made far too many bad loans to too many South Africans who could not afford to pay them back. Because it had not asked borrowers to put up their car or any other asset as collateral, it was left with a massive hole in its balance sheet when they failed to pay.”
http://www.moneyweb.co.za/moneyweb-financial/african-bank-rescue-rekindles-bailout-fears
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