Big oops April 17, 2012 at 7:05 am

Bloomberg tells us:

Two years after President Barack Obama vowed to eliminate the danger of financial institutions becoming “too big to fail,” the nation’s largest banks are bigger than they were before the credit crisis.

Five banks — JPMorgan Chase & Co. (JPM), Bank of America Corp., Citigroup Inc., Wells Fargo & Co., and Goldman Sachs Group Inc. — held $8.5 trillion in assets at the end of 2011, equal to 56 percent of the U.S. economy, according to the Federal Reserve.

Five years earlier, before the financial crisis, the largest banks’ assets amounted to 43 percent of U.S. output.

2 Responses to “Big oops”

  1. […] – Oops! […]

  2. Perhaps the bankers at the FRB and the bureaucrats at Tresury, FDIC, SEC shouldn’t have been exhorting JPM, Barclays, and Wells to take over sickly institutions like Bear, WaMu, Lehman and Wachovia during the crisis when they needed strong balance sheets in earnest…And bending all sorts of regulations and rules to do so.

    Can’t have your cake and eat it too.

    Too big to fail has been institutionalized since deposit insurance was enacted during the Great Depression. love it or hate it, we will have to live with it and have lived with it for some time.

    I wish the NY Times editorial page would understand this.