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
2015-08-29
84
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 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 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.
The resolution is______in the author’s point of view.
选项
A、of no help
B、bound to fail
C、without careful selection
D、sort of socialism
答案
C
解析
转载请注明原文地址:https://kaotiyun.com/show/gZOO777K
0
专业英语八级
相关试题推荐
EffectiveAssignmentsUsingLibraryandInternetResourcesAwell-designedassignmentcanteachstudentsvaluableresearchskill
AnexampleofaproductwhichmightwellhavebeenadvertisedduringtheearlystagesoftheIndustrialRevolutionisInadditi
FastfoodispopularinChina.TheworldwidefamousforeigncompanieslikeKFCandMcDonaldareSpreadingtoalmosteverycityi
AccordingtoSharon,whoisthemostlylikelytofallvictimtohemochromatosis?
Contrasttoresearchers’expectations,dysfunctionalfamilyrelationshipsandpoor【M1】______.communicationstylesappearto
SomeProblemsFacingLearnersofEnglishAlthoughmanyEnglishlearnershavegothighscoresinanEnglishtestsuchasIELTSor
Thereiswidespreadconsensusamongscholarsthatsecondlanguageacquisition(MB1SLA)emergedasadistinctfieldofresearchfro
Havingbeencaughtonthespot,theAmericanspywassenttotheGeneralLee.
人和动物的区别,除了众所周知的诸多方面,恐怕还在于人有内心世界。(2008年真题)
我的藏书都像是我的朋友,而且是密友。我虽然对它们并不是每一本都认识,它们中的每一本却都认识我。我每一走进我的书斋,书籍们立即活跃起来,我仿佛能听到它们向我问好的声音,我仿佛能看到它们向我招手的情景,倘若有人问我,书籍的嘴在什么地方?而手又在什么地方呢?我只
随机试题
人体内存在超标准的铅(100μg/L),主要原因是焊接、印刷、油漆作业及(),经呼吸、口进入体内。
患者,男,17岁。半小时前因跳马比赛不慎颈部受伤,初步检查:患者可主动做肩前屈、肘屈运动,但不能主动做肘伸运动,双下肢软瘫。(2008年第119题)急诊入院后,颈椎X线片未见骨折脱位,最适宜的处理是
消化性溃疡行手术治疗的适应证
25岁妇女,主诉白带多伴外阴痒。检查见外阴皮肤有抓痕,窥器检查后穹隆处有多量稀薄的白色泡沫分泌物,阴道粘膜有多个散在的红色斑点。
中国药典的凡例部分
基金托管人对基金管理人投资运作实行监督,其主要方式不包括()。
甲、乙、丙、丁四人拟设立一家普通合伙企业,其书面合伙协议中约定以下内容:(1)甲以劳务出资;乙和丙以现金出资;丁以房产使用权出资;(2)合伙企业的事务由乙全权负责,甲、丙、丁不得过问企业事务,也不承担企业亏损的民事责任;(3)合伙企业存续期间经全体合
在微程序控制方式中,机器指令、微程序和微指令的关系是()。
Givenherdedicationandcompetence,Iam______thatMs.Williamswillbeavaluableassettoyourcompany.
Fewcreaturesonearthareascuteastheblackliontamarin,andfewhaveasdramaticastoryline.Pug-nosedanddiminutive,w
最新回复
(
0
)