"Too Big To Fail"

Ending "Too Big To Fail"

Posted on Thursday, June 30, 2011

I. Introduction Over two years ago, the United States and the global economy faced the worst economic crisis since the Great Depression. The crisis was rooted in years of unconstrained excess on Wall Street, and prolonged complacency in Washington and in major financial capitals around the world....

FDIC Proposes Liquidation Pecking Order To Solve 'Too Big To Fail'

Posted on Sunday, March 20, 2011

Creditors who help authorities liquidate a troubled financial firm would be among those paid off first among unsecured creditors, according to a proposal issued by the Federal Deposit Insurance Corp. Bank and financial services groups have complained that more clarity is needed about how unsecur...

Bernanke: Regulators Can Handle 'Too Big To Fail' Banks

Posted on Tuesday, March 15, 2011

Fed chairman Ben Bernanke said on Thursday that regulators could now handle the collapse of a "too big to fail" bank. The next day, presenting a new research paper, Bernanke argued that foreign investors helped fuelled the financial crisis. Speaking at a meeting of the Senate Banking Committee on T...

Warren Buffett: 'Too Big To Fail' Will Never Be Resolved

Posted on Monday, February 14, 2011

No matter what the government does, taxpayer bailouts of the financial sector will sometimes be necessary, according to the nation's second richest man. As markets crashed in the fall of 2008, government officials feared that if certain financial institutions failed, the entire financial system -- ...

TOO BIG TO FAIL - Watchdog Says Bank Bailouts Made 'Too-Big-to-Fail' Even Bigger

Posted on Friday, February 4, 2011

The passing of the Dodd-Frank Reform Act last summer was hailed as the end of “too-big-to-fail” and the end of corporate bailouts. But Neil Barofsky, head of the group charged with overseeing the government’s handling of the Troubled Asset Relief Program (TARP) says the “too-big-to-fail” problem has...

Watchdog Says Bank Bailouts Made 'Too-Big-to-Fail' Even Bigger

Posted on Thursday, January 27, 2011

The passing of the Dodd-Frank Reform Act last summer was hailed as the end of “too-big-to-fail” and the end of corporate bailouts. But Neil Barofsky, head of the group charged with overseeing the government’s handling of the Troubled Asset Relief Program (TARP) says the “too-big-to-fail” problem has...

Report Says Excessive Risk Remains After Bank Bailout

Posted on Saturday, January 15, 2011

WASHINGTON — Citigroup, the giant financial services company bailed out by the government in November 2008, is still too big to be allowed to fail, a situation that could make future bailouts of big banking companies a necessity, a report by a government watchdog said Thursday. The report, issued ...

Citigroup 'Too Interwoven' to Fail,

Posted on Thursday, December 9, 2010

Chairman Says Citigroup remains too "interwoven" to fail even after the government has plowed billions into rescuing the banking titan and Congress has passed laws taking aim at financial behemoths, Citi Chairman Richard Parsons told CNBC. "It's not a question of too big to fail," Parsons said ...

Steering clear of systemic risk

Posted on Wednesday, October 27, 2010

Systemic risk is the threat that the failure of one financial institution causes significant disruption to, or even the collapse of, the broader financial system. The keystone of systemic risk is banking for two main reasons: banks are highly interconnected by thousands of loans and other contr...

The News About China Simplified

Posted on Sunday, June 7, 2009

The Chinese don’t consume as much stuff as we do. So they produce it and send it here (meaning they export to us). We buy it, thus giving them our dollars. Rather than invest all of our dollars we pay them for their stuff in their own country, they invest the money in our Treasuries, making the C...

Government Secrets

Posted on Thursday, April 23, 2009

Does it really come as a suprise to anyone that the Feds to Kenny Lewis mums the word on Merrill? First of all most business deals involved confidentiality or non-disclosure agreements for obvious reasons. But in this case, leaking the news would most certainly have panicked the markets (and w...

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