Released on 2004-02-29Categories Business & Economics

Too Big to Fail

Too Big to Fail

Author: Gary H. Stern

Publisher: Brookings Institution Press

ISBN: 9780815796367

Category: Business & Economics

Page: 247

View: 229

The potential failure of a large bank presents vexing questions for policymakers. It poses significant risks to other financial institutions, to the financial system as a whole, and possibly to the economic and social order. Because of such fears, policymakers in many countries—developed and less developed, democratic and autocratic—respond by protecting bank creditors from all or some of the losses they otherwise would face. Failing banks are labeled "too big to fail" (or TBTF). This important new book examines the issues surrounding TBTF, explaining why it is a problem and discussing ways of dealing with it more effectively. Gary Stern and Ron Feldman, officers with the Federal Reserve, warn that not enough has been done to reduce creditors' expectations of TBTF protection. Many of the existing pledges and policies meant to convince creditors that they will bear market losses when large banks fail are not credible, resulting in significant net costs to the economy. The authors recommend that policymakers enact a series of reforms to reduce expectations of bailouts when large banks fail.
Released on 2021-06-28Categories Business & Economics

Too-Big-to-Fail in Banking

Too-Big-to-Fail in Banking

Author: Tom Filip Lesche

Publisher: Springer Nature

ISBN: 9783658341824

Category: Business & Economics

Page: 248

View: 659

This book provides a comprehensive summary of the latest academic research on the important topic of too-big-to-fail (TBTF) in banking. It explains TBTF from various perspectives including the range of regulatory measures proposed to counter TBTF, most notably the globally accepted regulation of global-systemically important banks (G-SIBs) and its main tool of capital surcharges. The empirical analysis quantifies the shareholder value of the G-SIB attribution by using quarterly observations from more than 750 global banks between Q2 2008 and Q3 2015. The main finding is that G-SIBs are confronted with a substantial relative valuation discount compared to non-G-SIBs. From the end of 2011 until the end of 2015, a stable discount of 0.6x–0.8x price-to-tangible common equity (P/TCE) is statistically highly significant. The results suggest that the G-SIB designation effect, which positively impacts G-SIBs’ share prices because of funding benefits from IGGs, is dominated by the regulatory G-SIB burden effect, which negatively impacts G-SIBs’ share prices because of lower profitability due to capital surcharges and other regulatory requirements placed on G-SIBs. The findings re-open the debate about whether breaking up G-SIBs would unlock shareholder value and whether G-SIBs are regulated efficiently.
Released on 2011Categories Bank failures

Has Dodd-Frank Ended Too Big to Fail?

Has Dodd-Frank Ended Too Big to Fail?

Author: United States. Congress. House. Committee on Oversight and Government Reform. Subcommittee on TARP, Financial Services, and Bailouts of Public and Private Programs

Publisher:

ISBN: UCSD:31822038349726

Category: Bank failures

Page: 99

View: 403

Released on 1991Categories Bank failures

Economic Implications of the "too Big to Fail" Policy

Economic Implications of the

Author: United States. Congress. House. Committee on Banking, Finance, and Urban Affairs. Subcommittee on Economic Stabilization

Publisher:

ISBN: PSU:000018476545

Category: Bank failures

Page: 256

View: 514

Distributed to some depository libraries in microfiche.
Released on 2013-10-18Categories Business & Economics

Social Value Of The Financial Sector, The: Too Big To Fail Or Just Too Big?

Social Value Of The Financial Sector, The: Too Big To Fail Or Just Too Big?

Author: Viral V Acharya

Publisher: World Scientific

ISBN: 9789814520300

Category: Business & Economics

Page: 536

View: 244

As a result of the recent financial crisis, there has been significant public debate on the role of the financial sector in bringing about the “Great Depression.” More generally, there has been debate about whether the current industry structure has enhanced social welfare or served a detrimental role.This book is a collection of papers presented at the conference held at the Federal Reserve Bank of Chicago, in November 2012 that examined the social value of the financial sector as currently structured. Issues evaluated include what are the perceived benefits and costs of the current financial system? How valuable have industry innovations been for society? Should regulation be used to “move” the industry in a direction thought to be more valuable for society? Should “big” banks be broken up? What are the welfare implications of the current industry structure? In the book, leading industry scholars debate these issues with a goal of influencing public policy toward the industry.
Released on 2010-07-01Categories Business & Economics

Too Big to Fail

Too Big to Fail

Author: Andrew Ross Sorkin

Publisher: Penguin UK

ISBN: 9780241956021

Category: Business & Economics

Page: 640

View: 108

SHORTLISTED FOR THE BBC SAMUEL JOHNSON PRIZE 2010 They were masters of the financial universe, flying in private jets and raking in billions. They thought they were too big to fail. Yet they would bring the world to its knees. Andrew Ross Sorkin, the news-breaking New York Times journalist, delivers the first true in-the-room account of the most powerful men and women at the eye of the financial storm - from reviled Lehman Brothers CEO Dick 'the gorilla' Fuld, to banking whiz Jamie Dimon, from bullish Treasury Secretary Hank Paulson to AIG's Joseph Cassano, dubbed 'The Man Who Crashed the World'. Through unprecedented access to the key players, Sorkin meticulously re-creates frantic phone calls, foul-mouthed rows and white-knuckle panic, as Wall Street fought to save itself.
Released on 2018-06-07Categories Business & Economics

The Fed and Lehman Brothers

The Fed and Lehman Brothers

Author: Laurence M. Ball

Publisher: Cambridge University Press

ISBN: 9781108372862

Category: Business & Economics

Page: 298

View: 174

The bankruptcy of the investment bank Lehman Brothers was the pivotal event of the 2008 financial crisis and the Great Recession that followed. Ever since the bankruptcy, there has been heated debate about why the Federal Reserve did not rescue Lehman in the same way it rescued other financial institutions, such as Bear Stearns and AIG. The Fed's leaders from that time, especially former Chairman Ben Bernanke, have strongly asserted that they lacked the legal authority to save Lehman because it did not have adequate collateral for the loan it needed to survive. Based on a meticulous four-year study of the Lehman case, The Fed and Lehman Brothers debunks the official narrative of the crisis. It shows that in reality, the Fed could have rescued Lehman but officials chose not to because of political pressures and because they underestimated the damage that the bankruptcy would do to the economy. The compelling story of the Lehman collapse will interest anyone who cares about what caused the financial crisis, whether the leaders of the Federal Reserve have given accurate accounts of their actions, and how the Fed can prevent future financial disasters.
Released on 2021-01-12Categories Biography & Autobiography

Kamala's Way

Kamala's Way

Author: Dan Morain

Publisher: Simon and Schuster

ISBN: 9781398504868

Category: Biography & Autobiography

Page: 272

View: 977

A revelatory biography of the first Black woman to be elected Vice President of the United States. In Kamala’s Way, longtime Los Angeles Times reporter Dan Morain charts how the daughter of two immigrants born in segregated California became one of this country’s most effective power players. He takes readers through Harris’s years in the San Francisco District Attorney’s Office, explores her audacious embrace of the little-known Barack Obama, and shows the sharp elbows she deployed to make it to the US Senate. He analyses her failure as a presidential candidate and the behind-the-scenes campaign she waged to land the Vice President spot. And along the way, Morain paints a vivid picture of her family, values and priorities, as well as the missteps, risks and bold moves she’s made on her way to the top. Kamala’s Way is a comprehensive account of the Vice President-Elect and her history-making career.