The collapse of the United Sates Banking system happens right after the Mortgage crisis. The large banks and a few of the smaller ones began to close, if the government don’t bail them out. When the stock market remains down and losing points, the banks stop their lending practices, even with the guidance from the Government. Banks functions as such, when depositing your money into your savings account, the bank generate interest off of this money every year. Banks loan your money to another bank and then they would need pay an interest fee and manage the capital. The further people invest and deposit their own money into the bank the higher bank has in liability to sell and make more money. The formula banks practice endures Assets equal
