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Different from 2008, we now know the ramifications of a failing bank pretty well. The EU is conducting yearly stress tests to that effect. [1] We now see the e
by jpfr 10y ago
Different from 2008, we now know the ramifications of a failing bank pretty well. The EU is conducting yearly stress tests to that effect. [1]
We now see the effect of this new knowledge about a previously opaque sector. Politicians and buraucrats are not as afraid any more. So banks cannot get away by having the tax-payer carry their risk.
[1] http://www.eba.europa.eu/risk-analysis-and-data/eu-wide-stress-testing/2016 http://www.eba.europa.eu/risk-analysis-and-data/eu-wide-stre...
- dogma1138 10y agoYou should read the results of the stress test, also a hint it wasn't about "can the EU deal with one of the world's largest banks collapsing" but what can be done to prevent collapse, and what is the overall risk. http://www.eba.europa.eu/documents/10180/1532819/2016-EU-wide-stress-test-Results.pdf http://www.eba.europa.eu/documents/10180/1532819/2016-EU-wid... DB is also not lehman brothers, so the 2008 analogy isn't exactly on the money.