首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
Talk is cheap when it comes to solving the problem of too-big-to-fail banks. From the luxury of even today’s stuttering economic
Talk is cheap when it comes to solving the problem of too-big-to-fail banks. From the luxury of even today’s stuttering economic
admin
2016-03-10
17
问题
Talk is cheap when it comes to solving the problem of too-big-to-fail banks. From the luxury of even today’s stuttering economic recovery it is easy to vow that next time lenders’ losses will be pushed onto their creditors, not onto taxpayers.
But cast your mind back to late 2008. Then, the share prices of the world’s biggest banks could halve in minutes. Reasonable people thought that many firms were hiding severe losses. Anyone exposed to them, from speculators to churchgoing custodians of widows’ pensions, tried to yank(抽出)their cash out, causing a run that threatened another Great Depression. Now, imagine being sat not in the observer’s armchair but in the regulator’s hot seat and faced with such a crisis again. Can anyone honestly say that they would let a big bank go down?
And yet, somehow, that choice is what the people redesigning the rules of finance must try to make possible. The final rules are due in November and will probably call for banks in normal times to carry core capital of at least 10% of risk-adjusted assets. This would be enough to absorb the losses most banks made during 2007 -2009 with a decent margin for error.
But that still leaves the outlier banks that in the last crisis, as in most others, lost two to three times more than the average firm. Worse, the crisis has shown that if they are not rescued they can topple the entire system. That is why swaggering talk of letting them burn next time is empty. Instead, a way needs to be found to impose losses on their creditors without causing a wider panic—the financial equivalent of squaring a circle.
America has created a resolution authority that will take over failing banks and force losses on unsecured creditors if necessary. That is a decent start, but may be too indiscriminate. The biggest banks each have hundreds of billions of dollars of such debt, including overnight loans from other banks, short-term paper sold to money-market funds and bonds held by pension funds. Such counterparties are likely to run from any bank facing a risk of being put in resolution—which, as the recent crisis showed, could mean most banks. Indeed, the unsecured Adebt market is so important that far from destabilising it, regulators might feel obliged to underwrite it, as in 2008.
A better alternative is to give regulators draconian power but over a smaller part of banks’ balance-sheets, so that the panic is contained. The idea is practical since it means amending banks’ debt structures, not reinventing them, although banks would need roughly to double the amount of this debt that they hold. It also avoids too-clever-by-half trigger mechanisms and the opposite pitfall of a laborious legal process. Indeed, it is conceivable that a bank could be recapitalised over a weekend.
The banks worry there are no natural buyers for such securities, making them expensive to issue. In fact they resemble a bog-standard insurance arrangement in which a premium is received and there is a small chance—of perhaps one in 50 each year—of severe losses. Regulators would, though, have to ensure that banks didn’t buy each other’s securities and that they didn’t all end up in the hands of one investor. Last time round American International Group became the dumping ground for Wall Street’s risk and had to be bailed out(帮助……摆脱困境)too.
Would it work? The one thing certain about the next crisis is that it will feature the same crushing panic, pleas from banks and huge political pressure to stabilise the system, whatever the cost. The hope is that regulators might have a means to impose losses on the private sector in a controlled way, and not just face a binary choice between bail-out or oblivion.
In 2008, the following occurrences happened EXCEPT that______.
选项
A、banks’ capital shrank dramatically
B、firms pretended to profit
C、another Great Depression followed
D、organizations tried to take money back
答案
C
解析
细节题。由题干定位至第二段。该段第四句中的causing a run that threatened another GreatDepression表明,这种做法很有可能导致又一次经济大萧条,并不是确实发生的事,因此[C]符合题意。
转载请注明原文地址:https://kaotiyun.com/show/GI7O777K
0
专业英语八级
相关试题推荐
Scienceisgenerallytakenasmeaningeither(a)theexactsciences,suchaschemistry,physics,etc.,or(b)amethodofthough
______isthemostimportanteconomicactivityinCanada.
Whyaretheresomanycorporateabusestoday?
Agoodmodernnewspaperisanextraordinarypieceofreading.Itisremarkablefirstforwhatitcontains:therangeofnewsf
Accordingtothenewsitem,howmanyAmericansareunemployed?
三年前在南京我住的地方有一道后门,每晚我打开后门,便看见一个静寂的夜。下面是一片菜园,上面是星群密布的蓝天。星光在我们的肉眼里虽然微小,然而它使我们觉得光明无处不在。那时候我正在读一些关于天文学的书,也认得一些星星,好像它们就是我的朋友,它们常常在和我谈话
BiancaSforzaattractedfewstareswhenintroducedtotheartworldonJanuary30,1998.Shewasjustaprettyfaceinaframet
BiancaSforzaattractedfewstareswhenintroducedtotheartworldonJanuary30,1998.Shewasjustaprettyfaceinaframet
Stoppingcigarettesmokinghasbecomeabigproblemforallgovernments.Indemocraticcountries,theeconomicstrengthofthe
PASSAGETHREEWhydoesachimpstepintostopafightbetweentwoothers?
随机试题
肝细胞桥接坏死见于
一种利用函询形式进行的集体匿名思想交流过程的决策方法是()
Heplaysnotonlythepiano,()theviolin.
在意识的产生和发展过程中,起决定性作用的是( )。
关于违约责任的承担,下列说法正确的是( )。
国有企业改制为股份公司时,如果评估增值部分已按规定折成股份,且评估增值部分不再缴纳所得税。计提固定资产折旧时,在下列各项中应作为折旧基数的是()。
某企业2017年1月购买一宗40万平方米的土地使用权用于建造仓库,支付土地价款5000万元,新建仓库总建筑面积为10万平方米,仓库总造价为2500万元,2017年12月完工并验收合格交付使用,则该仓库的房产税计税原值为()万元。
Publicimagereferstohowacompanyisviewedbyitscustomers,suppliers,andstockholders,bythefinancialcommunity,bythe
我国2006年修订后颁布的《义务教育法》规定,义务教育实行国务院领导,省、自治区、直辖市人民政府统筹规划实施,由()。(2012年上半年真题)
以甲醇为燃料的汽车释放的污染物(如一氧化碳和对环境有害的碳氢化合物)比以汽油为燃料的汽车少得多,而甲醇燃料释放的甲醛却比汽油多。然而,一辆燃烧甲醇的汽车实际上比与之相当的燃烧汽油的汽车产生更少的大气甲醛污染。以下哪项如果正确,能最合逻辑地完成上文?
最新回复
(
0
)