Kyle Bass Explains The REAL Reason Banks Fail: The "Give-A-$h*t Factor"

According to Kyle Bass, something he calls the “give-a-shit” factor is an over-looked reason for bank failures.

At the 2010 AR Symposium recently, he told audience members in a speech:

“When you think about Switzerland, you have to extricate UBS and Credit Suisse because they became multiples of GDP… when you look at the rest of the banking system, they don’t have banks go down. Do you know why? Because the officers and directors of the bank become personally liable for the assets of the bank. So the give-a-shit factor is pretty high.”

Then he explained why banks need the GAS factor, and to do it, he said, just look at these two, and pointed to UBS and Credit Suisse.

“Once [Switzerland’s banking system] fixes those two, the country will be in good shape.”

For more on what Bass said, click here >

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