Banks should receive billions of dollars in assistance from their governments during a financial crisis that was in large part their fault. To what extent do you agree or disagree with this statement? Give reasons for your answer and include any relevant examples from your own knowledge or experience.

During a financial crisis, the government should save banks even though they are the main suspects in this event. In my opinion, these institutions must be kept afloat for sake of the people. Banks are long considered to be a safe haven where one can store their money in order it grow or take loans to fulfil their dreams. But banks are not free public institutions where they anyone can store free of charge and infrastructure surrounding it is free they are like other companies working to generate profit. When people store money in a bank that money only exist on paper the cash that’s been deposited in an account will be diverted to other areas like loans where it is given to individuals or companies for an interest and they should payback in a given time. Money not only given as loans but also invested in assets this area is more risky but more profitable and this is where many of corporations mishandled their investments and drove down the entire market along with them. Many of these financial conglomerates like other corporates have shareholders and they are obliged to please these shareholders. Therefore, their main objective is to generate profits and many of these greed fueled banking executives procured risky asset’s which ultimately failed this cycle of investment continued until debt was out of control and entire sector failed causing a crisis. Government swiftly came into action and funneled money into them to bail out because many of the shareholders are normal people with their entire savings are invested in them and many of businesses run on the loans provided by banks. To conclude, Authorities should help banks because the entire economy depends on them and they going bankrupt will make crisis even worse by annihilating life earnings and forcing businesses due to lack of credit ultimately increasing unemployment rate.