Opinion: Stressed out about big banks?
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The Times editorial board takes up the Federal Reserve’s ‘stress tests’ for banks deemed too big to fail, expressing little relief that the banking giants will be required to raise a mere $75 billion in extra capital:
That amount was less than some observers had feared, and Treasury Secretary Timothy Geithner called the results ‘reassuring.” But our reaction is just the opposite. We’re appalled by the prospect of the government taking an even bigger stake in the banking industry. And we’re still waiting for some market-based mechanisms to deter banks from becoming so systemically important that the government is compelled to rescue them.
Read the rest of the editorial here, then tell us what you think about too-big-to-fail banks and the stress tests by leaving your comments below.