US bank system on verge of new crisis

US bank system on the verge of a new crisis

Main
financial risk for the United States
It is now slightly different from the risk
which provoked the crisis in 2008
– the big banks have accumulated too much
debts at a very low level of own
capital.

according to
chief economist of the International
Monetary Fund, Simon Johnson,
which he expressed in his article
Project Syndicate, along with the risk
slowness becomes regulators
a serious threat to the entire
The US economy. Johnson says
the current situation in the US
economy resembles the events that
led to the financial crisis seven years
ago. "While all
financial crises begin in different ways,
each time repeats the same
Location: the big banks are in
trouble and on the brink of collapse".
– he says.

As an example,
the author says about one of
the largest US banks – Morgan
Stanley, the level of equity
is not more than 4% and, consequently,
the remaining 96% – it’s debts in one way or another
form. In 2008, the level of own
capital of the banking group Citigroup
It was 4.2%, and at the time of the crisis
the bank was in a very difficult position.

According to Johnson, the coefficients
capital adequacy, which
used by different regulators,
only contribute to the deterioration of the situation
cases, because misleading
inhabitants – used when calculating
items such as goodwill and deferred
tax assets. Johnson, however,
notes that the current situation
all in the banking sector is much better,
than before the crisis of 2008, even though
minor changes in the global
economy may nullify all
action to correct the situation,
because in the end the US banks, on average
It owns only 5% of the equity.

"We have already seen this film, and it is poorly
I ended. The next time you can see
even more eerie thriller"- warns
Johnson.

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