5 ms·
>"it's not on the hook for its own risk." Tell that to the Bear Stearns equity holders, who were 99% wiped out, or the Lehman Bros. equity holders who were com
by tatsuke95 14y ago
>"it's not on the hook for its own risk."
Tell that to the Bear Stearns equity holders, who were 99% wiped out, or the Lehman Bros. equity holders who were completely wiped out.
>"Banks need to be broken up, so that they are no longer "too big to fail.""
Fine, if you want to cripple long term economic growth by requiring banks to hold far more liquid assets. Or, they can rely on the Fed as the lender of last resort to step in when they need liquidity (which the Fed has done). I prefer the latter.
- apu 14y agoTell that to the Bear Stearns equity holders, who were 99% wiped out, or the Lehman Bros. equity holders who were completely wiped out. Goldman Sachs? Citibank? AIG (to pay back Goldman Sachs)?
- tatsuke95 14y agoPaid back. Paid back. Pretty sure paid back, though I'm less familiar with that situation (who AIG's counterparties are/were is irrelevant).