My kids were young when I started with the bank, whenever we drove by a branch my daughter would recognize the logo and state "Daddy's benk". Not sure why I thought of that now, I guess because she's growing up and I'm feeling old. :)
Hopefully "Daddy's benks" don't go broke because as 60 Minutes reports, the depositors are protected, but the shareholders get wiped out.
More great journalism from 60 Minutes.
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They raise an interesting question about limiting the size of banks going forward. If you're too big to fail then maybe you shouldn't continue to exist in your current form.
I'm of the opinion, probably a minority position, that no company is too big to fail. We just need to let them fail. Let the consolidation continue.
I guess we will never know what would have happened if the government had stayed out of the way.
As long as we're watching 60 Minutes we might as well get the Bernie Madoff story from them as well. It's sad that you have to diversify your portfolio managers to protect from yourself from fraud. Investors now have systemic and fraud risk, to go along with the old company, market, and inflation risks we have always lived with.
There's probably a few more "risks" I'm forgetting.
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