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Too Big To Fail
| Mon Nov. 30, 2009 9:14 AM PST
The Financial Stability Board (what a great name!) has created a list of the world's top 30 "systemically important" financial institutions — aka banks that are too big to fail. Citi and BofA make the list; Wells Fargo doesn't. If you were in charge of Wells, would you be pleased or annoyed?
Via Felix Salmon, who wants to know why there are no American insurers on the list. Probable answer: AIG has already failed, so they can hardly make the list, and America's other big insurers are mostly purely domestic affairs. They're the Fed's problem, not the world's.
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Comments
Failure
Submitted by RZ (not verified) on Mon Nov. 30, 2009 11:12 AM PST.
To be picky, a failed insurer isn't even a federal problem. It's a state problem, as that is the level at which insurers are regulated. Just ask Pennsylvania; it's administering the estates of Reliance, Legion and a few others.
Pleasse do try to get your regulators right
Submitted by The Lounsbury (not verified) on Tue Dec. 1, 2009 3:20 AM PST.
Until you have regulatory reform, Insurers are NOT (nor are they typically anywhere) under the supervision of your central bank. It is rare to see Central Banks responsible for insurance. Carelessly blaming the Fed for problems that are actually outside its remit is mere ignorance.
Scuttlebutt around the
Submitted by Art Eclectic on Tue Dec. 1, 2009 7:26 AM PST.
Scuttlebutt around the finance blogs is that Wells is in deep danger. Too bad BofA still has acquisition indigestion from Countrywide and Merrill. When Warren Buffett makes an exit, you'll know the time is near.
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