If all Latin American debtor governments had defaulted in the 1980s,most of the capital of the largest American commercial banks would have been eliminated.

Question

Quizplus · Accepted Answer

The statement is true. The Latin American debt crisis of the 1980s had a significant impact on the largest American commercial banks, which had lent large sums of money to the debtor governments. If all of the debtor governments had defaulted, the banks would have suffered substantial losses and many may have been bankrupted.

If All Latin American Debtor Governments Had Defaulted in the 1980s,most