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Nope, leverage ratios are still too generous and if a bank failed, you can bet your ass we'd bail them out in a heartbeat.
by adrenalinelol 10y ago
Nope, leverage ratios are still too generous and if a bank failed, you can bet your ass we'd bail them out in a heartbeat.
- harryh 10y agoQuite a few banks have failed in the US this year without government bailouts. https://www.fdic.gov/bank/individual/failed/banklist.html https://www.fdic.gov/bank/individual/failed/banklist.html
- duaneb 10y agoThe phrase "too big to fail" exists for a reason—the big banks aren't getting smaller. Unless the big banks are shoving their liabilities into smaller ones just before death, I don't think it's too relevant to the financial crisis.
- DashRattlesnake 10y agoI don't think that list is on point. Just looking at the names, a lot of those look like small local banks. When people complain about bailouts and "too big to fail" banks, they're usually talking about the treatment of large national banks.
- cm2187 10y agoI would like to refer to my post on bail in. https://news.ycombinator.com/item?id=12220961 https://news.ycombinator.com/item?id=12220961 I honestly do not believe a politician will accept to face the political heat of a bail out before having attempted a bail in first.