Statement Concerning Too Big To Fail (TBTF)

I found the Opening Statement at the Full Committee Hearing on ‘Too-Big-to-Fail’ Post- Dodd-Frank, made yesterday (June 26) by The Committee On Financial Services’ Chairman Hensarling, to be notable. While I don’t necessarily agree with everything said in this Opening Statement – or with all aspects of the following excerpts – here are the excerpts I found … Read moreStatement Concerning Too Big To Fail (TBTF)

Larry Kudlow Comment On January 13 Regarding “Too Big To Fail”

On Thursday, Larry Kudlow interviewed Rep. Spencer Bachus on CNBC. I found one comment Kudlow made, starting at the 6:17 mark,  to be especially notable: “Many people believe that the top 5,6,8 banks are in fact too big to fail and constitute government sponsored enterprises in effect.  That is an unfair advantage in the credit … Read moreLarry Kudlow Comment On January 13 Regarding “Too Big To Fail”

Moral Hazard Speech

Here is a link to an October 20 speech given by Mervyn King.  The speech speaks of the concept of Moral Hazard: http://www.bankofengland.co.uk/publications/speeches/2009/speech406.pdf Although there are various notable passages, I found this line perhaps most interesting:    “The massive support extended to the banking sector around the world, while necessary to avert economic disaster, has created possibly the … Read moreMoral Hazard Speech

Bank Bonuses and Broader Implications

I’d like to make a brief comment about the “bank bonus” story that came out a few days ago.  Here is one article on it, titled “Bank Bonus Tab: $33 Billion” from The Wall Street Journal on 7-31-09: http://online.wsj.com/article/SB124896891815094085.html#articleTabs%3Darticle Needless to say, it seems outrageous that such bonuses, in said amounts, were paid out so … Read moreBank Bonuses and Broader Implications