ANALYSIS, COMMENTS, THOUGHTS, AND OTHER OBSERVATIONS IN DR. SKOSPLES' NATIONAL INCOME AND BUSINESS CYCLES COURSE AT OHIO WESLEYAN UNIVERSITY
Sunday, September 19, 2010
Supervising Banks’ Liquidity Is a Pain for Regulators
Central Bank Chiefs and regulators in Switzerland are deploying new ways on how to prevent financial chaos among banks if they were to go out of business. In the financial crisis in September 2008--when the Lehman Brothers bank plummeted--policymakers and others were concerned with how much money banks should hold in reserve. They have made it clear that they are going to wait until 2015 to make the final decision and the time in between will help officials come to their final decision. This article is interesting because this can effect banks in the states- who knows, maybe that small print appearing on our banks doors that say FDIC will no longer be there?
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the failure of the lehman brothers bank and its resulting economic impact shows conclusively that governments need to have contingency plans ready for even the largest of companies. The maxim that a company is too big to fail has been completely invalidated.
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