Back in 2008-09 we used to regularly observe Bank Failure Friday. Hundreds of banks got themselves in trouble by extending too much credit to questionable borrowers. As soon as the value of the collateral (homes, commercial buildings, etc.) started falling, the banks were toast.
But who could possibly manage a bank so badly in an era of massive money-printing from the Fed and rising asset values? If a borrower defaults on a loan, you just seize the collateral, which is worth a lot more now than it was a few years ago when you made the loan.
Nevertheless, a few bankers are still finding ways to blow up a bank even in the most forgiving imaginable environment. Yesterday brought back Bank Failure Friday for the ninth time this year.