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Greenspan Says U.S. Should Consider Breaking Up Large Banks - The Diigo Meta page

www.bloomberg.com/...news - Cached - Annotated View

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tonycurzonprice
Tonycurzonprice bookmarked on 2009-10-17
  • “If they’re too big to fail, they’re too big,” Greenspan
    said today. “In 1911 we broke up Standard Oil -- so what
    happened? The individual parts became more valuable than the
    whole. Maybe that’s what we need to do.”

This link has been bookmarked by 6 people . It was first bookmarked on 16 Oct 2009, by Amped Status.

  • 22 Oct 09
    bmaclean
    W21st NYC

    conservative myths debunked credit crisis legacy Greenspan repents too big to fail

    • “I don’t think merely raising the fees or capital on
      large institutions or taxing them is enough,” Greenspan said.
      “I think they’ll absorb that, they’ll work with that, and it’s
      totally inefficient and they’ll still be using the savings.”
  • 18 Oct 09
    pickinjava
    Arabica Robusta

    international finance crisis greenspan economics

  • 17 Oct 09
    tonycurzonprice
    tony curzon price
    • “If they’re too big to fail, they’re too big,” Greenspan
      said today. “In 1911 we broke up Standard Oil -- so what
      happened? The individual parts became more valuable than the
      whole. Maybe that’s what we need to do.”
  • trexbean
    T. Rex Bean

    greenspan banks regulation idiot

  • 16 Oct 09
    danancona
    Dan Ancona

    econ greenspan boggle

  • ampedstatus
    Amped Status

    "U.S. regulators should consider breaking up large financial institutions considered “too big to fail,” former Federal Reserve Chairman Alan Greenspan said. Those banks have an implicit subsidy allowing them to borrow at lower cost because lenders believe the government will always step in to guarantee their obligations. That squeezes out competition and creates a danger to the financial system, Greenspan told the Council on Foreign Relations in New York. “If they’re too big to fail, they’re too big,” Greenspan said today. “In 1911 we broke up Standard Oil -- so what happened? The individual parts became more valuable than the whole. Maybe that’s what we need to do.” At one point, no bank was considered too big to fail, Greenspan said. That changed after the Treasury Department under then-Secretary Hank Paulson effectively nationalized Fannie Mae and Freddie Mac, and the Treasury and Fed bailed out Bear Stearns Cos. and American International Group Inc. “It’s going to be very difficult to repair their credibility on that because when push came to shove, they didn’t stand up,” Greenspan said. "

    Economic Reform

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