'...A "zombie bank" is as "a bank or financial institution with negative net worth," according to Investopedia. And yet, "they continue to operate as a result of government backings or bailouts that allow these banks to meet debt obligations and avoid bankruptcy. Zombie banks often have a large amount of nonperforming assets on their balance sheets, which make future earnings very unpredictable."
"The large banks which dominate most of the lending in the United States are effectively zombie banks," well-known banking analyst Meredith Whitney said this summer. "You've got an expense structure that just doesn't match the revenue structure. So it's a classic issue of negative operating leverage. You don't buy institutions that have negative operating leverage..."'
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