Too Big To Fail

  • News

    House Republicans Say Law They Opposed Doesn’t Do The Thing They Didn’t Want It To

    Happy Birthday, Dodd-Frank! You’re four years old and useless—nay, worse than useless—and Rep. Jeb Hensarling and his fellows thinks still think that the perfect gift is a dose of euthanasia with a side of not doing anything else, as they explain in a new 100-page Hallmark card.

    / Jul 21, 2014 at 12:55 PM
  • This cow seems cool.

    News

    Too Big To Fail Is Pretty Much Over, Says Moody’s

    Yesterday Moody’s put the debt of four of the six big U.S. banks – GS, JPM, MS, and WFC – on review for downgrade, and the other two – C and BAC – on the amusing “review direction uncertain,”1 because Moody’s is becoming increasingly convinced that, if those banks blew up, the government would not […]

    / Aug 23, 2013 at 4:04 PM
  • soothing soothing blue

    News

    Here’s Another Plan For Not Bailing Out Too Big To Fail Banks

    Some analysts at the Bank for International Settlements have found a new way to unwind too-big-to-fail banks painlessly, which I guess is newsworthy; here is a good summary, and here is the actual paper. The basic idea is to resolve a bank over the weekend by writing down its debt by some regulator-chosen amount X, […]

    / Jun 6, 2013 at 5:53 PM
  • It's like, this y axis sort of sucks, but you can't really fault GS for that. The financial crisis screwed up a lot of graph scaling.

    News

    The Too Big To Fail Subsidy Is Negative Ten Billion Dollars, Says Goldman Sachs

    I feel like I’m on the “the too-big-to-fail subsidy is negative!” beat, even though I only kind of believe it, so in that spirit here is a fun paper from Goldman Sachs’ Global Markets Institute1 that finds that the too-big-to-fail subsidy is negative. That is, Goldman concludes, contrary to popular belief, that the biggest U.S. […]

    / May 22, 2013 at 3:59 PM
  • Brown and Vitter, though don't ask me which is which.

    News

    Bill To Make Banking Boring Actually Might Be Kind Of Fun

    There are a lot of things you can read about the Brown-Vitter bill recently, though it’s a really nice day out and you probably shouldn’t. It’s not … it’s not like a real thing is it? When the text of the bill, which would raise the equity capital requirements on big banks to ~15% on […]

    / May 1, 2013 at 5:22 PM
  • News

    The Ballsiest Country In The Western Hemisphere

    [caption id="attachment_100068" align="alignleft" width="260"] The passing of the torch.[/caption]

    It’s not Venezuela, now that old Hugo is gone. It’s not Cuba. And it’s definitely not the U.S. Indeed, the ballsiest country on this side of the globe seems to be measuring its cojones against us, in a series of direct throw-downs. And Argentina’s are bigger.

    / Mar 19, 2013 at 3:26 PM
  • He's Jamie Dimon! He's got a bank! It's big! Work with me here.

    Banks

    The Too Big To Fail Subsidy Is Negative Sixteen Billion Dollars, Or Possibly Some Other Number

    The story so far is that a few days ago Bloomberg View claimed that the ten biggest U.S. banks got an annual subsidy of $83 billion from being too big to fail. That claim seemed silly to me, and I said so, and this weekend Bloomberg responded to that post saying, and I quote, “we […]

    / Feb 26, 2013 at 2:21 PM
  • Oh what now you trust me?

    News

    Why Should Taxpayers Give Big Banks A Subsidy of $83 Billion Per Year, Or Any Other Made-Up Number For That Matter?

    Bloomberg has an editorial today about how the government is subsidizing the top ten U.S. banks by $83 billion a year and maybe it should stop doing that. Because the editorial is getting a lot of attention, and because it is wrong, let’s discuss it. Here is Bloomberg: Lately, economists have tried to pin down […]

    / Feb 21, 2013 at 1:41 PM
  • Those sad little sidebars for AAA

    News

    Congressman Wants To Warn Creditors Of Too-Big-To-Fail Banks That Those Banks Can Fail

    There’s nothing surprising, exactly, about this chart that Fitch sent out today, but it’s still sort of stark: Once there was a land where bank debt was AA, AAA if it was particularly good or A if it was particularly dicey. Now AA is the new AAA and BBB is commonplace. The idea of risk-free […]

    / Feb 13, 2013 at 5:27 PM
  • News

    Banks Lobbying, Capitalizing Like It’s 2007

    They may still be too big and fragile, but banks are throwing their considerable weight around and getting their way.

    / Jan 7, 2013 at 6:08 PM
  • hsbc_mexico

    News

    It’s Good To Be Too Big To Fail

    So, HSBC is going to have to cough up almost $2 billion for, in effect, running a massive money-laundering operation that helped fund such luminary do-gooders as the Iranian government and Mexican drug gangs. But the U.S. has decided not to throw the cuffs on the British bank because, well, that would be pretty hard. And could create an awful lot of collateral damage that no one needs as the country careens off the fiscal cliff.

    / Dec 11, 2012 at 5:50 PM
  • News

    Vikram Pandit Not Feeling Sandy Weill’s Break-Up The Banks Call

    About a month ago, retired Citi CEO Sandy Weill set his alarm an hour early, got out of bed when it was still dark, ate a piece of rye toast, told Joan he’d see her when he’d see her, took the elevator downstairs to wait for the car that drove him out to Englewood Cliffs, and went on CNBC to proffer a small suggestion to Wall Street: break up the big banks. Perhaps you heard about it? Not many people were receptive to the notion of Weill giving them advice on the matter, which may or may not have had something to do with the fact that in his day, Weill couldn’t get enough of big banks and was the man responsible for cobbling together the behemoth known as Citigroup, an institution so huge it can barely support its own weight. The response by most, in fact, was “Shut it, you old bag.” But what about Vikram Pandit, the lucky guy who inherited the place? What did he think of Weill’s tip? After giving it some good thought– really and truly considering it– for a few weeks, he’s decided to take a pass:

    Citigroup’s chief executive has knocked back the idea of big banks being split up after calls from people such as his predecessor Sandy Weill.

    But not for the reasons you might think! Pandit actually agrees with Sando because if you think about it, Citi’s already been broken up and is basically the bank it was before the merger that resulted in it needing firefighters to use a giant pulley system to lift it out of bed and get around every day.

    Pandit said Citi, formed in Mr Weill’s time with mergers such as the acquisition of Travelers in 1998, had already gone back to the basics of banking, and aside from some global markets businesses had sold most of the units from that deal. “What’s left here is essentially the old Citicorp,” he told the Financial Times. “That’s a tried and proven strategy. Why did it work? Because it was a strategy based upon operating the business and serving clients and not a strategy based on dealmaking. That’s the fundamental difference.”

    So we’re all on the same page here.

    Citi Chief Rejects Calls For Bank Splits [FT]

    / Aug 21, 2012 at 1:07 PM
  • I did a search for "sarcastic clap" and this came up, it's just a coincidence that it's Dimon.

    Banks, News

    Banks Prove That They Are Not Too Big To Fail By Saying “We Can Fail” On A Piece Of Paper, Moving On

    One way you could spend this slow week is reading the “living wills” submitted by a bunch of banks telling regulators how to wind them up if they go under. Don’t, though: they’re about the most boring and least informative things imaginable and I am angry that I read them.* Here for instance is how JPMorgan would wind itself up if left to its own devices**:

    (1) It would just file for bankruptcy and stiff its non-deposit creditors (at the holding company and then, if necessary, at the bank).

    (2) If after stiffing its non-deposit creditors it didn’t have enough money to pay its depositors it would sell its highly attractive businesses in a competitive sale to willing buyers who would pay top dollar.

    This seems wrong, no? And not just in the sense of “in my opinion that would be sort of difficult, what with people freaking out about JPMorgan going bankrupt and its highly attractive businesses having landing it in, um, bankruptcy.” It’s wrong in the sense that it’s the opposite of having a plan for dealing with banks being “too big to fail”: it’s premised on an assumption that the bank is not too big to fail. If JPMorgan runs into trouble that it can’t get out of without taxpayer support, it’ll just file for bankruptcy like anybody else. Depositors will be repaid (if they’re under FDIC limits); non-depositor creditors will be screwed just like they would be on a failure of Second Community Bank of Kenosha.

    / Jul 5, 2012 at 10:40 AM
  • News

    Michael Lewis Would Like To See Occupy Wall Street Start A Run On Some Banks

    …if I were in charge I would probably reorganize the movement around a single, achievable goal: a financial boycott of the six “ too big to fail ” Wall Street firms: Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, Morgan Stanley, Wells Fargo. We would encourage people who had deposits in these firms to withdraw […]

    / Apr 18, 2012 at 11:55 AM
  • News

    How’d You Like Too Big To Fail?

    If you watched the HBO version of Andrew Ross Sorkin’s book last week, what kind of tears did you shed while watching?

    / May 31, 2011 at 1:57 PM
  • News

    DB At The Movies: Too Big To Fail

    If you’ve been keeping up with your HBO original programming schedule, you know that Too Big To Fail, the movie based on Andrew Ross Sorkin’s 2009 book, airs next Monday evening. Last night was the premiere at the Museum of Modern Art and while the trailers looked promising, in order to make sure none of […]

    / May 17, 2011 at 2:28 PM
  • News

    HBO’s Too Big To Fail Will Include Hank Paulson Down On One Knee Begging Nancy Pelosi Moment

    Earlier: Nancy, Please! I’m Down On My Knees In A $3500 Suit!

    / Apr 19, 2011 at 6:10 PM
  • News

    James Woods: “You Better Watch Too Big To Fail If You Want To Know What To Do With Your Money”

    Will Dick Fuld (who Woods plays in the movie) heed this advice and set the DVR?

    / Mar 28, 2011 at 5:23 PM

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