Monday, November 30, 2009

30 Global Financial Institutions To Have Living Wills In Case They Go Bust

The Financial Times reports today that 30 global financial institutions are under the scope for detail scrutiny. It seems these are the "too big" to fail now. The Financial Stability Board is trying to preempt systemic risks from spreading around the world.

In addition, global financial institutions to have "Living Wills", in other words, what to do in case they go bust.

Here is the list:


-Bank of America Merrill Lynch
-Goldman Sachs
-JPMorgan Chase
-Morgan Stanley
-Royal Bank of Canada
UK groups
-Royal Bank of Scotland
-Standard Chartered
-Credit Suisse
-BNP Paribas
-Société Générale
-Mitsubishi UFJ
-Sumitomo Mitsui
-Banca Intesa
-Deutsche Bank

-Swiss Re

Bnet has very pertinent comments:

"What is eye-opening however is the disproportionate global imbalance of the list. The only Asian banks on the list are the big four Japanese megabanks, while there are not as many American banks as you might expect either: just 5. On the other hand, European banks account for a total of 9 banks; if you include British banks as well, then the number rises to 13. Given that all the insurers bar one on the list are European too, that means that a whopping 63 percent of firms on the FSB’s problem list are located in the Eurozone.
That’s a worrying trend, and it also backs up pretty well the massive speculation on credit default swaps in the region recently,"

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1 comment:

In Debt We Trust said...

How do I buy credit default swaps as a retail investor? Last time I checked it wasn't possible. Has there been a fund that now does such trading activity?

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