Anyone with Deutsche Bank
Posted: Wed Feb 10, 2016 1:44 pm
TalkQuesada is a forum for people who live, work, own a property or are interested in finding out more about the Quesada area in Costa Blanca, Spain.
https://www.talkquesada.com/
https://www.talkquesada.com/banking-and-finances-f85/anyone-with-deutsche-bank-t10685.html
Federal Reserve Chair Ben Bernanke also defined the term in 2010: "A too-big-to-fail firm is one whose size, complexity, interconnectedness, and critical functions are such that, should the firm go unexpectedly into liquidation, the rest of the financial system and the economy would face severe adverse consequences." He continued that: "Governments provide support to too-big-to-fail firms in a crisis not out of favoritism or particular concern for the management, owners, or creditors of the firm, but because they recognize that the consequences for the broader economy of allowing a disorderly failure greatly outweigh the costs of avoiding the failure in some way.
freddo wrote:No financial institution is too big to fail
Belgium?? I do not know where your information is coming from, but your remark is completely WRONG. There wasn't any Belgian bank on the edge of collapse at any time! Belgian government intervened with extra capital injections to strenghten the level of equity of certain banks or nationalized one which had a load of rubbish products in its portfolio. The injected capital has been paid back and the nationalized one has been split in a 'good'' bank and a 'bad' bank. Although in my opninion ALL banks are bad. Between the end of 2007 and 2011 quite a lot of banks through Europe have been reinforced with capital from national banks, and some are still supported. Have a look at the latest european bank stretch test and you will clearly see where the doubtful ones are.Jo.B wrote:freddo wrote:No financial institution is too big to fail
If you believe that, you shouldn't worry, because if Deutsche goes under, the whole European Banking system will follow ...
I can tell you that governments learned a lot after the Lehman Brothers bankruptcy (i.e better intervene in time than let them fail). Look at what Belgium did (or had to do) for A LOT smaller banks than DB to keep their country alive.
...certain banks or nationalized one which had a load of rubbish products in its portfolio. The injected capital has been paid back and the nationalized one has been split in a 'good'' bank and a 'bad' bank...