Dec 15 Watch How Big is Too Big to Fail? Paul Solman talks to economist George Schultz about the merging of large, national banks and how that could impact the idea that some companies are too big to fail. Continue watching
Nov 13 FDIC's Bair on 'Too Big to Fail,' Lessons Learned By Carolyn O'Hara Tonight on the NewsHour, FDIC Director Sheila Bair weighs in on the state of the U.S. banking system. In a Web-exclusive excerpt, Bair speaks bluntly about the need to break up banks that are deemed "too big to fail."… Continue reading
Nov 10 Competing Senate, House Financial Reform Bills Differ Over Fed's Role Senate Banking Committee Chairman Chris Dodd, D-Conn., unveiled legislation Tuesday that would dramatically reform how U.S. banks are regulated. The bill differs from legislation moving through the House of Representatives on several key issues. Continue reading
Nov 02 Watch Taxpayers' $2.3 Billion 'Gone' in CIT Bankruptcy The recession claimed another major financial institution, as lending giant CIT filed for bankruptcy after months of struggling to keep the company, which funds about 1 million small- to medium-sized businesses, afloat. Continue watching
Oct 28 Bill: Biggest Firms Would Fund Future Rescues By Dave Gustafson The U.S. government would be given broad new powers to shrink financial firms deemed "too big to fail" and shift the cost of rescuing troubled companies from taxpayers to other large firms, according to draft legislation released Tuesday. Continue reading
Oct 23 What Can We Do About "Too Big to Fail"? Question: What needs to happen so that we will have no companies “too big to fail”? Paul Solman: Come up with incentives that induce big companies to slim down, or disincentives that punish them if they don’t. What’s startling… Continue reading
Sep 02 If Big Banks Were Allowed to Fail, Would the FDIC Need a Bailout? Question: Some have said that big banks, like Citi or Bank of America, should have been allowed to fail. Given their size, could the FDIC really have covered the insured deposits? Or would the… Continue reading
Aug 25 Simon Johnson on Bank Bonuses and 'Too Big to Fail' By Business Desk Editor’s note: The clip today in our continuing series of video conversations with economist Simon Johnson, author of the popular Baseline Scenario blog, which Paul Krugman calls a “must read,” concerns whether bank bonuses are deserved and whether… Continue reading
Aug 05 Should We Have Dealt With 'Too Big to Fail' in the 1980s? Question: If you go back and look at the recession of 1982, you will see that the Fed bailed out large banks mainly due to bad LDC loans. I think the precedent of moral… Continue reading