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BenevolentM -> Too Big to Fail (3/15/2015 8:32:14 AM)
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quote:
Set Up To Fail: Dodd-Frank ...
The results are eye opening. JPMorgan Chase JPM, Citibank and Bank of America BAC have become the three largest banks in the world. Together with Wells Fargo WFC, which has become the world's sixth largest, assets of the four largest U.S. banks amount to an astonishing 97 percent of our 2012 gross domestic product.
Is that too big? For many of us, it is. But if you argue size is not the problem, the question you must then ask is, what would happen if any or all of them were in extreme financial trouble?
Let's look at what macroaxis has to say about Wells Fargo which is a Warren Buffet favorite.
http://www.macroaxis.com/invest/ratio/WFC--Probability_Of_Bankruptcy
52.86 percent
Some of the big banks are in the 70 percent range. You have to ask yourself, what is keeping them from failing?
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