Friday, October 26, 2012

Too big to fail

This isn't news, but these are the list of TBTF banks in the US.

Bank of America (BAC), Citigroup (C), JPMorgan Chase (JPM), Wells Fargo (WFC), Goldman Sachs (GS), Morgan Stanley (MS), Bank of New York Mellon (BK) and State Street (STT).
(source:  http://www.thestreet.com/story/11300685/1/8-us-banks-make-too-big-to-fail-list.html).

Since these are TBTF, any bonds or securities that they issue should be considered backed by the Federal Reserve and/or Treasury, the same as Fannie Mae (FNMA), Freddie Mac (FMCC), and Ginnie Mae (GNMA).  They should possibly be included in the total national debt.

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