Skip to main content

Newsroom

May 10, 2013

No Lehman Moments as Biggest Banks Deemed Too Big to Fail

There may be no government action more universally reviled in the U.S. than bank bailouts. Republicans and Democrats, financial industry lobbyists and watchdogs, Wall Street executives and President Barack Obama say taxpayers should never again rescue a failing bank.

To make sure a future crisis won’t force governments to intervene, international regulators are requiring the biggest banks to borrow less. Three years ago, U.S. lawmakers passed the Dodd-Frank Wall Street Reform and Consumer Protection Act — with provisions to liquidate a collapsing financial institution and end the perception that some banks are too big to fail.

“’Because of this reform, the American people will never again be asked to foot the bill for Wall Street’s mistakes,’ Obama said on July 15, 2010. ‘There will be no more taxpayer-funded bailouts — period.’

Investors, it turns out, don’t believe that, Bloomberg Markets magazine will report in its June issue. The people who lend money to the largest banks are betting that Uncle Sam will toss a lifeline to a giant should it stumble, according to a study by Deniz Anginer, a World Bank financial economist.”

***

Read full Bloomberg article here

In the News
Share

MEDIA REQUESTS

For media inquiries, please contact us at
press@bettermarkets.org or 202-618-6433.

Contact Us

For media inquiries, please contact press@bettermarkets.org or 202-618-6433.

To sign up for our email newsletter, please visit this page.

Name(Required)
This field is for validation purposes and should be left unchanged.

Sign Up — Stay Informed With Our Monthly Newsletter

This field is for validation purposes and should be left unchanged.

For media inquiries,

please contact press@bettermarkets.org or 202-618-6433.

Donate

Help us fight for the public interest in our financial markets, protecting Main Street from Wall Street and avoiding another costly financial collapse and economic crisis, by making a donation today.

Donate Today