Discuss the importance of appropriately evaluating a loan applicant.

Article 2 Summary Requirements Your second article should be different from your first article and relate to the material covered in chapters 10 through 20 of your textbook. Here is what you need to do for this activity:
* Find an article in one of the resources listed on the syllabus (Wall Street Journal, Business Week, Economist and American Banker) that relates to these chapters. It needs to be a recent article (no older than September 2015).
* Summarize the article and list its association to specific chapter material or concept in your textbook. State the reason(s) for your selection.
* Provide a definition for the specific concept discussed in your selected article. For example, if the article discusses restrictive covenants you should include their definition: restrictive covenants are parts of a loan agreement, specifying actions the borrower must take or must not take for a loan agreement to remain in force.
* List some important points or lessons learned from this article.
* Provide a full copy of the article (links are not acceptable).

This is an example:
How Citi Stumbled in Mexico; Bank Fires 11 Employees Amid Alleged Fraud; Missed Warning Signs?
By Amy Guthrie, Christina Rexrode and Laurence Iliff
Wall Street Journal May 16, 2014
SUMMARY: Citigroup Inc.’s Mexican unit showered loans on a troubled oil-services company as other banks were pulling back, according to people familiar with the matter, setting the stage for a loss of about $400 million that has sparked fraud probes in the U.S. and Mexico. Citigroup Chief Executive Michael Corbat said in a memo Wednesday that the third-largest U.S. bank by assets had fired 11 employees in its Banamex unit in connection with the loan losses from Mexico’s Oceanografía SA de CV that the bank has blamed on fraud.
Reasons for choosing this article: This article is very relevant for the Commercial Bank Management course as it provides us with an opportunity to explore lending fraud with the case of Citigroup’s Banamex unit. Providing loans to businesses is discussed in chapters 16 and 17 of our textbook. Some of the lessons learned with this article are:
1. The importance of appropriately evaluating a loan applicant.
2. The need to establish a monitoring system and follow any warning signals carefully.
3. The critical role that verification of information can play in the loan approval process.
These are the names of the chapters with the article must be related according to the Professor
10. The Investment Function in Financial-Services Management.
11. Liquidity and Reserves Management: Strategies and Policies
12. Managing and Pricing Deposit Services
13. Managing Nondeposit Liabilities
14. Investment Banking, Insurance, and Other Sources of Fee Income
15. The Management of Capital
16. Lending Policies and Procedures: Managing Credit Risk
17. Lending to Business Firms and Pricing Business Loans
18. Consumer Loans, Credit Cards, and Real Estate Lending
19. Acquisitions and Mergers in Financial-Services Management
20. International Banking and the Future of Banking and Financial Services

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