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
2015-06-14
67
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.
In 2008, the following occurrences happened EXCEPT
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。
转载请注明原文地址:https://kaotiyun.com/show/yNOO777K
0
专业英语八级
相关试题推荐
WhichofthefollowingisTRUE?
A、hethoughtMr.SunhaswrittentheletterwellB、thereissomethingwrongaboutthegrammerC、theycanbeimprovedaccordingt
WhichofthefollowingnovelistswroteTheSoundandtheFury
Theearliestcontroversiesabouttherelationshipbetweenphotographyandartcenteredonwhetherphotograph’sfidelitytoappea
Theearliestcontroversiesabouttherelationshipbetweenphotographyandartcenteredonwhetherphotograph’sfidelitytoappea
Onemajorobstacletoeconomicdevelopmentispopulationgrowth.Thepopulationsofmostdevelopingcountriesgrewataratemuc
MarriageinMen’sLivesisacourageousandinnovativebook:courageousbecauseittacklesapoliticallyandsociallychargedis
Thiswasthecapital’smostanxiousweeksinceSeptember11th.OnMondaythegovernmentissuedaredalertthatterroristattac
有些男人还在怀念昔日以男子为中心的年代。那时,他们下了班回家,热腾腾的晚餐巳摆好在桌上,妻子儿女围上来问寒问暖;家中大事小事多由自己作主,因为男人作为一家之主承担了全家经济生活的来源。妇女走出家门就业后,男人的供养职责相对减小,在家庭的地位也变得不像从前那
ThelongeststatevisitthatHuJintaohasmadetoasinglecountrywilllast
随机试题
SevenSecretsofNaturallyThinPeople[A]Youhatethem.Youknowthetype…theoneswhoneverbataneyewhenitcomestim
简述教师劳动的主要特点。
HaveyoueverhadtodecidewhethertogoshoppingorstayhomeandwatchTVonaweekend?Nowyou【C1】_______dobothatthesa
妊娠妇女睡眠时应采取的体位是
脊髓灰质炎病毒的致病特点不包括
破伤风治疗最重要的环节是
()不得直接认购政府债券。
背景资料: 某安装公司承包了某医院住院大楼的机电安装工程,包括给水排水、电气、通风空调、智能化等工程。采用工程量清单计价,固定单价合同,签约合同价为5000万元,其中含暂列金额为500万元。合同于6月16日签订.合同约定:工程的设备、材料由业主指定品牌,
为形成各类报表和报告,信息管理应当建立()的工作流程。
某公司抽查100人报考考研班的情况,其中有40人报考导航,38人报考争流,35人报考起航,同时有15人没有报班,有12人参加了三个教育机构的考研班,问有多少人报考了两个教育机构的考研班?()
最新回复
(
0
)