Quite a few readers excitedly sent a link to a Bloomberg editorial, “Why Should Taxpayers Give Big Banks $83 Billion a Year?” which summarizes a study by Kenichi Ueda of the International Monetary Fund and Beatrice Weder di Mauro of the University of Mainz that the editors used to extrapolate that the five biggest US banks are “barely profitable” if they weren’t able to borrow
Day after day, whenever anyone challenges the TBTF banks' scale, they are slammed down with a mutually assured destruction message that limitations would impair profitability and weaken the country's position in global finance. So what if you were to discover, based on Bloomberg's calculations, that the largest banks aren't really profitable at all? What if the billions of dollars they allegedly earn for their shareholders were almost entirely a gift from U.S.
By Simon Johnson
Goldman Sachs is investing $450 million of its own money in Facebook, at a valuation that implies the social networking company is now worth $50 billion. Goldman is also apparently launching a fund that will bring its own high net worth clients in as investors for Facebook.
MUMBAI: Banks that had acquired debt-laden Jyoti Structures under debt restructuring rules, are now getting ready to sell off its assets piecemeal, two people familiar with the matter said. After several attempts to sell controlling stake in the heavy electrical equipment maker failed, the lenders have called expression of interest (EoI) from interested parties, the persons cited earlier said. Jyoti Structures has defaulted on loans of more than Rs 2,000 crore.
The message of the day is "damn the consequences, the casino bar shall remain open", whatever it takes, no matter the consequences to taxpayers who will be responsible for the bar tab.
Bank of England Launches Two New Stimulus Packages
The BBC reports Bank shares jump on new business support plans
Bank shares have jumped in the wake of plans from the Bank of England to launch two new stimulus packages.
Richard Suttmeier submits: The Number of Deadbeat Banks is on the rise - TARP money was intended to increase business lending and to help homeowners avoid foreclosure. Unfortunately these objectives have not been achieved, and now 55 out of almost 700 TARP recipients have reneged on their dividend payments due on November 16th.