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Article: IN FOCUS: Stress Tests Complicate 'Too Big to Fail' Debate; There's a number, $100B, but it's not just a matter of size.(Washington)
- Article from:
- American Banker
- Article date:
- May 18, 2009
- Author:
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Byline: Joe Adler
WASHINGTON - Just who is "too big to fail" these days?
By drawing a line at $100 billion in assets, and promising to give the 19 institutions over that mark enough capital to weather an economic downturn, the government appears to have defined which banks are indeed "too big to fail."
But is that too simplistic a measure? Are institutions like Regions Financial Corp., GMAC LLC and SunTrust Banks Inc. in the same category as Bank of America Corp., Citigroup Inc. and JPMorgan Chase & Co.?
"It's unclear whether" all 19 are "really that critical to the financial system that their failure or a slow resolution wouldn't be ...