The stability of the U.S. banking system is maintained by means of supervision and regulation inspection, deposit insurance, and loans to troubled banks. For over 50 years, these precautions have prevented banking panics. However, they have been some close calls. The collapse of Continental Illinois Bank & Trusted Company of Chicago in 1984 did not bring down the banking system, but it certainly rattled some windows.
In the late 1970s, continental soared to a leadership position among Midwestern banks. Parts of its growth strategy were risky, however. It made many loans in the energy field, including $1 billion that it took over from Penn Square Bank of Oklahoma City. To obtain the funds it needed to make these loans, Continental relied heavily on short term borrowing from other banks and large 30-day certificates of deposit—“hot money”, in banking jargon. At least one Continental officer saw danger signs and wrote a warning memo to her superiors, but the memo went unheeded. Although the Comptroller of the Currency inspected Continental on a regular basis, it failed to see how serious its problems were going to be.
Penn Square Bank was closed by regulators in July 1982. When energy prices began to slip, most of the $1 billion in loans that Continental had taken over from the smaller banks turned out to be bad. Other loans to troubled companies such Chrysler, international Harvester, and Braniff looked questionable. Seeing these problems, “hot money” owners began to pull their funds out of Continental.
By the spring of 1984, a run on Continental had begun. In May, the bank had to borrow $3.5 billion from the Fed to replace overnight funds it had lost. But this was not enough. To try to stem the outflow of deposits from Continental, the FDIC agreed to guarantee not just the first $100,000 of each depositor's money but all of it. Nevertheless, the run continued.
Federal regulators tried hard to find a sound bank that could take over Continental—a common way of rescuing failing banks. But Continental was just too big for anyone to buy. By July, all hope of a private sector rescue was dashed. Regulators faced a stark choice: Let Continental collapse, or take it over themselves.
Letting the bank fail seemed too risky. It was estimated that more than 100 other banks had placed enough funds in Continental to put them at risk if Continental failed. Thus, on a rainy Thursday at the end of July, the FDIC in effect nationalized Continental Illinois at a cost of $4.5 billion. This kept the bank's doors open and prevented a chain reaction. However, in all but a technical sense, Continental had become the biggest bank failure in U.S. history.
- In the spring of 1984, Continental experienced_________
- a fast growth period B. a stability period C. a run D. an oil price decrease
- By July, all hope of a private sector rescue was ________
- destroyed B. absurd C. desperate D. damaged
- The nationalization of Continental_________
- saved it
- made "hot money" owners continue to pull their funds out of Continental
- almost brought down the banking system
- fired many high-ranking officers
- Banking panics may be prevented by means of________
- deposit insurance B. growth strategy
- long-term borrowing D. warning memo
核心词汇注释
stability n．稳定性
precaution n．防范措施或 方法
panic n．惊慌，恐慌，
soar v．高飞，高耸，滑翔，剧增，昂扬 几高飞范围，高涨程度
strategy n．策略
jargon n．行话
unheeded adj．未被注意的，被 忽视的
comptroller n．审计员
stem n．茎，干，词干，茎干 v．滋生，阻止
estimate v．估计，估价，评估 几估计，估价，评估
nationalize v．国有化，公 有化
长难句剖析
The stability of the U．S．banking system is maintained by means of supervision and regulation，inspections，deposit insurance，and loans to troubled banks．
[结构分析]本句的主干是The stability…is maintained。
[参考译文]美国银行业系统的稳定是通过监管、调控、查账、存款保险以及给经营困难的银行提供贷款这些手段来维持的。
To obtain the funds it needed to make these loans，Continental relied heavily on short term borrowing from other banks and large 30-day certificates of deposit—“hot money”，in banking jargon．
[结构分析]本句主干是Continental relied heavily on，不定式to obtain构成的词组做句子的目的状语，funds后面的it needed to…loans是定语从句。
[参考译文]为了获得放贷所需的资金，大陆银行过度依赖从其他银行借来的短期借款和30天大额定期存单 — 用银行业的行话称为“热钱”。
When energy prices began，to slip，most of the $l billion in loans that Continental had taken over from the smaller banks turned out to be bad．
[结构分析]本句是主从复合句。主句是most of．．．bad，most of the $l billion in loans做主语，谓语是turned out to be bad，that引导的定语从句修饰主语。when引导的是时间状语从句。
[参考译文]当能源价格开始下跌时，大陆银行从这些小银行手中接管的10亿美元贷款中的大部分都成为坏账。
全文参考译文
美国银行业系统的稳定是通过监管、调控、查账、存款保险以及给经营困难的银行提供贷款这些手段来维持的。50多年以来，这些防范措施已经防止了一些银行业危机。不过还是有很危急的时候。1984年的伊利诺大陆银行和芝加哥信托公司的倒闭虽然没有导致银行业系统的崩溃，但是影响也不小。
大陆银行20世纪70年代末期快速成为中西部银行中，的领头雁。可它的一些发展策略是很危险的。该银行在能源领域发放了很多贷款，包括从Oklahoma市的Penn Square银行接管10亿美元。为了获得放贷所需的资金，大陆银行过度依赖从其他银行借来的短期贷款和30天大额定期存单——用银行业的行话称为“热钱”。至少有一位大陆银行官员看到了危险征兆并给她的上级写了备忘录，但并未受到重视。尽管货币监理经常对大陆银行进行检查，但也没能发现问题的严重性。
Penn Square银行在1982年7月被执法人员关闭。当能源价格开始下跌时，大陆银行从这些小银行手中接管的10亿美元贷款中的大部分都成为坏账。除此之外，提供给Chrysler、International Harvester和Baniff等经营不善的公司的贷款似乎也是问题重重。鉴于这些问题，“热钱”的持有者开始从大陆银行抽回资金。
到1984年春天，大陆银行开始出现挤兑。5月，该银行不得不从联邦银行借款35亿美元来弥补一夜之间流失的资金，但是这还不够。为了尽量防止大陆银行的存款外流，美国联合存款保险公司同意保证储户所有的钱，而不是最初的每人10万美元。但是，挤兑仍然在继续。联邦管理部门试图找到一家好的银行接管大陆银行，这是一种拯救衰落银行的普遍方式。可对于任何一个买主来说，大陆银行都太大了。到了7月，所有私营机构的拯救希望都破灭了。管理部门面临着痛苦的选择：是让大陆银行破产还是自己接管过来。
让大陆银行破产太过冒险。按照估计，若是让其倒闭，大约有100家其他银行在大陆银行存放的资金足以使他们自己濒临险境。所以在7月底一个阴雨的星期四，美国联合存款保险公司以45亿美元的代价让伊利诺大陆银行国有化。这使得银行可以继续营业，避免了连锁反映。但严格来说，大陆银行已经成为了美国银行业历史上最大的败笔。
题目答案与解析
1．大陆银行在1984年春天经历了________。 [答案]C
A．一段快速成长期B．一段稳定时期 C．一场挤兑风波 D．油价下跌
[解析]本题的依据是文章第四段的第一句话By the spring of l984，a run on Continental had begun，从中可知，C项为正确答案。
2．到了7月，所有私营机构的拯救希望都________。 [答案]A
A．破灭了 B．是荒谬的 C．孤注一掷 D．被损坏
[解析]本题可参照文章第五段。依据是第五段的第三句话By July ,all hope of a private sector rescue was dashed．Regulators faced a stark choice：Let continental collapse，or take it over themselves．从句中的collapse(垮台，崩溃)一词可看出事态的严重性，因此A项为正确答案。
3．大陆银行的国有化_______。[答案]A
A．拯救了大陆银行 B．使“热钱”所有者继续从大陆银行抽回资金
C．几乎摧毁了整个银行业系统 D．解雇了很多高层官员
[解析]本题的依据是最后一段的第三句话Thus，on a rainy Thursday at the end of July，the FDIC in effect nationalized continental Illinois at a cost of $4.5 billion．This kept the bank's door s open and prevented a chain reaction．从中可知，将Continental国有化，此后该银行能继续开门营业。因此A项为正确答案。
4．可以通过_________ 方法来防止银行业危机。 [答案]A
A．存款保险 B．成长策略 C．长期借款 D．警示备忘录
[解析]本题的依据是第一段第一句话的banking system is maintained by means of supervision and regulation，inspections，deposit insurance，and loans to troubled banks，从中可知，四个选项中只有A项为正确答案。