Fact and Fiction Behind Too Big to Fail
[This research was posted to the New York Society of Security Analysts’ Finance Professionals’ Post on August 24th, 2014.]
Derivatives are the least understood component of systemic risk. Derivatives pose issues of size, measurement and behavior unlike loans. They string the biggest banks together in ways unseen three decades ago and even undermine job creation. Government officials may have had to bail in 2008, but nobody can claim that there will be no more bailouts until derivatives are better understood and managed.
To read the full research report, click on the following PDF link.
Derivatives and Systemic Risk: It's Also About Jobs (176.9 KiB, 408 hits)
For a more legible version of the second table in the report, click on the following PDF link.
Peer Reports - Derivatives as Percent of Assets (39.7 KiB, 340 hits)