Too Big to Fail: The Hazards of Bank Bailouts

Brookings Institution Press
1
Free sample

The potential failure of a large bank presents vexing questions for policymakers. It poses significant risks to other financial institutions, to the financial system as a whole, and possibly to the economic and social order. Because of such fears, policymakers in many countries—developed and less developed, democratic and autocratic—respond by protecting bank creditors from all or some of the losses they otherwise would face. Failing banks are labeled "too big to fail" (or TBTF). This important new book examines the issues surrounding TBTF, explaining why it is a problem and discussing ways of dealing with it more effectively.

Gary Stern and Ron Feldman, officers with the Federal Reserve, warn that not enough has been done to reduce creditors' expectations of TBTF protection. Many of the existing pledges and policies meant to convince creditors that they will bear market losses when large banks fail are not credible, resulting in significant net costs to the economy. The authors recommend that policymakers enact a series of reforms to reduce expectations of bailouts when large banks fail.

Read more

About the author

Gary H. Stern is president and chief executive officer of the Federal Reserve Bank of Minneapolis. Ron Feldman is senior vice president at the Federal Reserve Bank of Minneapolis. Paul A. Volcker was chairman of the Federal Reserve from 1979 to 1987.

Read more
5.0
1 total
Loading...

Additional Information

Publisher
Brookings Institution Press
Read more
Published on
Feb 29, 2004
Read more
Pages
230
Read more
ISBN
9780815796367
Read more
Language
English
Read more
Genres
Business & Economics / Banks & Banking
Business & Economics / General
Political Science / Public Policy / Economic Policy
Read more
Content Protection
This content is DRM protected.
Read more
Read Aloud
Available on Android devices
Read more

Reading information

Smartphones and Tablets

Install the Google Play Books app for Android and iPad/iPhone. It syncs automatically with your account and allows you to read online or offline wherever you are.

Laptops and Computers

You can read books purchased on Google Play using your computer's web browser.

eReaders and other devices

To read on e-ink devices like the Sony eReader or Barnes & Noble Nook, you'll need to download a file and transfer it to your device. Please follow the detailed Help center instructions to transfer the files to supported eReaders.
The definitive inside account of the "extraordinary" (Financial Times) 1MDB scandal, "a true life thriller" (Ben Mezrich) about a "modern Gatsby" who managed to swindle over $5 billion with the aid of Goldman Sachs and others--a "must read" (Booklist) "epic tale" (Publishers Weekly) that exposes the secret nexus of elite wealth, banking, Hollywood, and politics from two award-winning Wall Street Journal reporters.

In 2009, with the dust yet to settle on the financial crisis, a baby-faced, seemingly mild-mannered Wharton grad began setting in motion a fraud of unprecedented gall and magnitude--one that would come to symbolize the next great threat to the global financial system. His name is Jho Low, a man whose behavior was so preposterous he might seem made up.

An epic true-tale of hubris and greed, Billion Dollar Whale reveals how this young social climber pulled off one of the biggest heists in history--right under the nose of the global financial industry. Federal agents who helped unravel Bernie Madoff's Ponzi scheme say the 1MDB affair will become the textbook case of financial fraud in the modern age--and its fallout is already being credited for taking down the prime minister of Malaysia. With his yacht and private jet reportedly seized by authorities and facing money-laundering charges in Malaysia, an Interpol red notice, and an ongoing U.S. Department of Justice Investigation, Low has become an international fugitive.
For readers of Liar's Poker, Den of Thieves, and Bad Blood, Billion Dollar Whale will become a classic, harrowing parable about finance run amok.
Research Paper (undergraduate) from the year 2012 in the subject Business economics - Personnel and Organisation, grade: none, Atlantic International University (School of Social and Human Studies), course: Masters in Human resources Management, language: English, abstract: Orientation: this study is a critical analysis on the role of organizational democracy in the function, effectiveness and productivity of an organization. Research Purpose: the purpose of this study was to investigate the relationship that exists between organizational democracy and productivity as well as to identify the potential of organizational democracy in Zimbabwe. Motivation of the study: A scientific inquiry is vital to assess the role organizational democracy can play in enhancing organizational vitality, productivity and cohesion. From such a study the practicality of organizational democracy can be assessed and a frame work can be proposed through which employees participate in organizational structures and systems. Research Design, approach and Method: A quantitative survey comprising group interviews and questionnaire was carried out. Ninety participants from nine agricultural companies in the Chipinge District of Zimbabwe took part in the research. The response rate for the questionnaire was 84%. . Main Findings: Organizational democracy is positively related to productivity. There is no universal standard of industrial democracy, but its nature depends on the current socioeconomic and political environment in which the organization exists. An organization can also evolve from one democratic structure to another in response to the changing environment. Practical/Managerial implications: the form democracy takes must come as a result of dialogue and consultation with employees and stakeholders. Understanding the environment in which the organization exists would provide vital input to the nature of employee participation in the decision making process. Contribution/value-added: the study showed that consultation, consent, dialogue and mutuality are important ingredients in the nature of organizational democracy and they influence the resultant benefits.
The hilarious New York Times bestseller “sharply observes the lives of globe-trotting, overindulging, investment bankers” (Entertainment Weekly).
 
“Some chick asked me what I would do with 10 million bucks. I told her I’d wonder where the rest of my money went.” —@GSElevator
 
For three years, the notorious @GSElevator Twitter feed offered a hilarious, shamelessly voyeuristic look into the real world of international finance. Hundreds of thousands followed the account, Goldman Sachs launched an internal investigation, and when the true identity of the man behind it all was revealed, it created a national media sensation—but that’s only part of the story.
 
Where @GSElevator captured the essence of the banking elite with curated jokes and submissions overheard by readers, Straight to Hell adds John LeFevre’s own story—an unapologetic and darkly funny account of a career as a globe-conquering investment banker spanning New York, London, and Hong Kong. Straight to Hell pulls back the curtain on a world that is both hated and envied, taking readers from the trading floors and roadshows to private planes and after-hours overindulgence. Full of shocking lawlessness, boyish antics, and win-at-all-costs schemes, this is the definitive take on the deviant, dysfunctional, and absolutely excessive world of finance.
 
“Shocking and sordid—and so much fun.” —New York Daily News
 
“LeFevre’s workplace anecdotes include tales of nastiness, sabotage, favoritism, sexism, racism, expense-account padding, and legally questionable collusion.” —The New Yorker
Charles Wheelan’s wonderfully whimsical, best-selling Naked series tackles the weird, surprisingly colorful world of money and banking.

Consider the $20 bill.

It has no more value, as a simple slip of paper, than Monopoly money. Yet even children recognize that tearing one into small pieces is an act of inconceivable stupidity. What makes a $20 bill actually worth twenty dollars? In the third volume of his best-selling Naked series, Charles Wheelan uses this seemingly simple question to open the door to the surprisingly colorful world of money and banking.

The search for an answer triggers countless other questions along the way: Why does paper money (“fiat currency” if you want to be fancy) even exist? And why do some nations, like Zimbabwe in the 1990s, print so much of it that it becomes more valuable as toilet paper than as currency? How do central banks use the power of money creation to stop financial crises? Why does most of Europe share a common currency, and why has that arrangement caused so much trouble? And will payment apps, bitcoin, or other new technologies render all of this moot?

In Naked Money, Wheelan tackles all of the above and more, showing us how our banking and monetary systems should work in ideal situations and revealing the havoc and suffering caused in real situations by inflation, deflation, illiquidity, and other monetary effects. Throughout, Wheelan’s uniquely bright-eyed, whimsical style brings levity and clarity to a subject often devoid of both. With illuminating stories from Argentina, Zimbabwe, North Korea, America, China, and elsewhere around the globe, Wheelan demystifies the curious world behind the paper in our wallets and the digits in our bank accounts.

©2018 GoogleSite Terms of ServicePrivacyDevelopersArtistsAbout Google|Location: United StatesLanguage: English (United States)
By purchasing this item, you are transacting with Google Payments and agreeing to the Google Payments Terms of Service and Privacy Notice.