No Lehman Moments as Biggest Banks Deemed Too Big to Fail
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Source: Bloomberg

 

See also No Lehman Moments as Biggest Banks Deemed Too Big to Fail

 

Category: Bailouts

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8 Responses to “Investors Believe Govt Will Rescue TBTF Banks”

  1. Moss says:

    They have been conditioned to believe this. Thus is the legacy of Greenspan, Bernanke, Paulson, Geithner, Summers and others.

  2. Frilton Miedman says:

    All of it, believable, I do question the notion the Moody’s would procure a legitimate negative rating for any TBTF.

  3. Global Eyes says:

    Even for bailed out banks, putting the debt burden on their backs is a recipe for failure. Don’t be surprised if Too Big To Fail (TBTF) gets replaced by (TWTW) which stands for Too Weak To Win.

  4. rd says:

    You put this together with the Wahington’s Blog article on TBTF price manipulation of commodities and energy and you get a very sad state of affairs..

    Fabrice Turre found guilty:
    http://www.bloomberg.com/news/2013-08-01/tourre-found-liable-in-sec-case-claiming-1-billion-fraud.html

    This could be an interesting message for the troops: you can make a very good living doing illegal things but it is possible that eventually you will be left holding the bag while your employer dsowns you, pockets the profits, and your bosses are ot indicted.

    • Frilton Miedman says:

      I;m worried Tourre is a table scrap to appease the masses…”Oh look, Wall St corruption was finally taken down”.

      He’s nothing in the big scheme of things, just a single player caught doing what’s industry standard for TBTF’s

  5. kek says:

    Maybe bank investors believed that this time wasn’t different, contrary to what “The Bernank” bashers and the Zero Hedge crowd thought. Maybe these banks are just making a boatload of money, and the thesis of shadow inventory was wrong. Warren Buffett sure thinks so.

    Share price performance from 3/09:

    WFC 377%
    BAC 305%
    C 405%
    G 139%
    MS 77%
    JPM 285%

  6. [...] fail they fail. Lending money to Citigroup, a proven failure with a strong incentive to fail again, is less risky than lending to a smaller, healthier, and more successful [...]

  7. [...] TBTF banks, questions have been asked about what the subsidy is to them of being TBTF. This is a good quantification of the dollar amount benefit of being too big to fail and it comes to about $82 billion over between 2009 and [...]