Thursday, January 20, 2011

Too Big to Save?

Those banks that were too big to founder
Have grown bigger without growing sounder;
So, what to do then,
If they founder again,
As sooner or later they're bound ter?  

The top five US banks now comprise 13.3% of the nation's financial firms' assets, as Real Time Economics points out in its Number of the Week. This is up from 11.8% in 2007, when Bank of America, JP Morgan Chase, Citi, Wells Fargo and Goldman Sachs were all considered too big to fail. In a comment echoed by MIT economist Simon Johnson, RTE's Mark Whitehouse wonders if these banks, in comparison with the federal government's strapped resources, are now too big to save.
Posted by Dr. Goose
Labels: , , , , ,

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Popular Posts

  • Student Loan Blues
    "Though college, I felt, was a sure thing, As of now, unless gold I'm unearthing, To pay off my loan, I'll have to postpon...
  • Over-Hurd at an HP Board Meeting
    "After proofing each check and gratuity,  We've determined beyond ambiguity:  Your expenses look funny,  If none of this money  ...
  • Powerball
    I'm buying a Powerball ticket (Or several, or even a thicket), In hopes I may win A billion bucks in The unlikely case that they pic...
  • Money Supply
    "I'm afraid," said Bernanke to Geithner, "The debt crisis still has lots of bite in 'er. Though it may cause some...
  • The $37 Billion Question
    Said a Harvard professor of econ, "That Google's got something unique on: They have cash by the score, Yet still borrow more; T...
  • Fed's Letter to Deutsche Bank
    "In reviewing your earnings per annum, We're less than impressed, and we pan 'em. The bank may have gains, But this letter ...
  • Piqued by Oil
    The price of petroleum's slacking With all of that pumping and fracking Maintaining supply At a level so high, While demand, at...
  • Safe Investments?
    Said a strategist, airing his views On central bank rumors and news: "You've booked every gain And best not retain Your bonds...
  • A Bad Trade
    The economy once ago sank From abuses at many a bank, Which Congress attacked In a really big act That went by the name of Dodd-Fran...
  • Consumption Be Done About It?
    The US has always depended On a rate of consumption that's splendid, By consumers for whom The means to consume  May soon have them over...