This Great Graphic comes from Zero Hedge. It shows individual bank assets as a percentage of the GDP of the country in which they are headquartered. Europe is characterized by relatively small countries with large banks. While the too-big-too-fail doctrine was cited in the US, it may be a misnomer. It is not size that stands out relative to GDP, as the chart below illustrates. It is that they are systemically important. It also part of the reason the US government was able to provide support to its banks in a way that is still threatening to overwhelm several European countries.
Great Graphic: Bank Leverage
Reviewed by Marc Chandler
on
October 05, 2012
Rating:
Reviewed by Marc Chandler
on
October 05, 2012
Rating:
