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Wednesday 18 April 2012

Banks "too big to fail" have grown even bigger

The five largest US banks, guaranteed government support for being "too big to fail", have grown significantly larger.  Almost no progress has been made on reducing the financial system's exposure to banks which are "too big to fail".

Concentration of financial control into the hands of fewer decision makers continues, further increasing exposure of the financial system to risk.  Those five US banks now hold assets worth 56% of the US economy. 

Decision making at those deemed "too big to fail" continues to be unconstrained by the normal consequences of risk taking.

See Bloomberg's "Banks seen dangerous defying Obama's too-big-to-fail move".


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