Wednesday, February 06, 2013

Mark Thoma discusses 'too big to fail banks'

in 'The case for and against too big to fail banks'. Surprisingly, there are no references to the writings of the British banker Andrew Haldane on the topic. For an outsider like his speech
'On being the right size' where he estimates the subsidy to TBTF banks and the so called economies of scale for such banks seemed important "There is no longer evidence of economies of scale at bank sizes above $100 billion."
Gulzr Natarajan's summary here.
Check also his speech on socially useful banking and the discussion by Yves Smith.

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