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In New Phase of Crisis, Securities Sink Banks

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In the good old bad days, banks were collapsing due to the bad loans they made on their own; pretty standard stuff. Now, however, they're apparently collapsing because of stuff they bought from other banks.

"Thousands of banks and thrifts scooped up securities tied to the housing market or other financial institutions in the past decade," the Journal reports. ""Under most scenarios, they were good and prudent investments -- as long as we didn't have a housing or banking crisis," says John Stein, president and chief operating officer at FSI Group LLC, a Cincinnati company that invests in financial institutions."