To Financial Giants, Everything is a “Micro-Loan” Three years ago, the federal government used tens of billions in taxpayer dollars to save the banking system. Now, at this dire economic moment, the country needs the banks to return the favor. –Joe Nocera, “Mr. Banker, Can You Spare a Dime?”; The New York Times (9/10/2011) It’s...Read More
The Too-Big-To-Fail Debate Advocates for cutting so-called “too big to fail” financial institutions down to (less threatening) size — I’m one of them — have rightly focused on the systemic risk such entities pose; the unfair, distorting effects on competition such a policy causes, due to the implicit federal guaranties backing TBTF companies (which drives...Read More
