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Those Medici

Article Abstract:

Florence was a banking center during the Renaissance period, and the Medici family headed the dominant family bank. This family also supplied two queens for France, four popes, and controlled Florence. The bank was set up by Giovanni di Bicci de' Medici in 1397, and collapsed in 1494 as a result of French aggression, internal conflict and depression. Branches of the bank were run as partnerships. The bank ran papal finances, and this helped to give it power. The church did not permit interest to be charged, but various methods were found to get round this, such as repayment of debt in a different currency, with interest effectively in the exchange rate.

Finance, History, Medici, Giovanni de, family

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No end to the burden

Article Abstract:

Mexico has carried out a bank rescue scheme which has resulted in arguments as to who should pay, and whose fault it is that banks were hit by a crisis. There is less attention focused on the key issue of how such a crisis could be prevented in the future. Fobaproa, the agency dealing with tackling the crisis, has spent around $65 billion on bad debts, and much of this is accounted for by a few large loans. Fraud has been involved, but the government is not likely to obtain sufficient evidence to jail those responsible.

Economic policy, Mexico

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