18 total views, 1 views today
After the 2008 bailout, new guidelines were provided to banks and a test created to ensure that too big to fail banks were not too big to fail, i.e. that they wouldn’t need a bailout next time around. 7 years later and only 1 bank fully passed the test. Truthfully, why would any bank want to NOT be too big to fail? Its a real easy way to get a pile of free money when the next 2008 occur in their eyes. If you can get to a point where you are ‘too big to fail’ that means the tax payers will give you as much money as you need to stay afloat so there is no incentive at all for the banks to cut costs, bank in less risky manners etc.
This post has already been read 463 times!