People in the company were not attentive to the amount of loans that were delinquent, who should be allowed to borrow, and how many people were making deposits. Banks like these do not realize the amount of loss they can create without properly regulating anything.

Regulation and constant updates on company or, in this case, bank spending is crucial in understanding how much the financial institution has in reserve. What also must be taken into consideration is how much money is flowing out. HBO has most likely a lot of money going out in the form of large salaries or pensions as well as missed payments. If more communication took place to warn HBO of impending loss from missed payments or too high pay scales, perhaps they would have known just how much money would be needed when they gained losses.

Provisions are hard to determine and entail a lot...
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