Tags » Too Big To Fail

Are They Still Too Big to Fail?

The Dodd-Frank Act includes provisions to address whether banks remain “too big to fail. The act makes it easier to intervene at the BHC level. In case of a failure, the FDIC will be appointed receiver of the top-tier parent holding company, and losses of a subsidiary bank will be assigned to shareholders and unsecured creditors of the BHC. 32 more words

Bank Depositor Protection Act

   By Bob Shapiro

I generally am NOT a fan of business regulation. I believe that simple enforcement of laws against fraud and other crimes should be sufficient to keep businesses on the straight and narrow. 578 more words

Monetary Policy

A Different Take on the AIG Case: The Dangers of Invoking 19th Century Principles to solve 21st Century Problems

Bagehot, as in Walter Bagehot, was mentioned no less than seven times in the decision splitting the baby in the AIG trial.[1]   A nineteenth century British commentator, Bagehot was among the first to recognize that too little liquidity could wreak havoc on a financial system. 1,953 more words

Finance & Economics

Robert Reich (How to Punish Bank Felons)

What exactly does it mean for a big Wall Street bank to plead guilty to a serious crime? Right now, practically nothing.

But it will if California’s Santa Cruz County has any say.

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Remember that time the nation’s largest banks engaged in fraud and deceptive lending to fuel Wall Street’s insatiable appetite for dodgy investments backed by home mortgages?

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Well That Was Not Supposed To Happen, by Tyler Durden

As SLL said in a recent post, “Trust Me, Charlie Brown,” the Too Big To Fails are even bigger and thus, more failure-prone. From Tyler Durden at zerohedge.com: 21 more words

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