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-- had had an hour.
-- AIG Prudential Financial and GE capital are too big to fail with more on.
What this means for you here's Elizabeth MacDonald and -- bottom line to live with now in store for these capital they have to face government's stress testing also lets face face tougher capital standards that the Federal Reserve.
Can change about any input from congress.
And they have to basically enacted living wills which shall tell the government.
With which assets -- will sell -- and if those wills are inadequate now the FTSE can tell these companies that you have to put more assets in your living will set you would have to -- best of -- here.
Too big to -- the irony -- is that Jamie Dimon had told congress you know what.
There's a solution -- too big to fail what's called bankruptcy break -- break up the company's Friday.
But you know I think what happened here was they saw what happened AIG and that is the assets ended up at the Federal Reserve that -- too big to fail what will happen to those rotten assets for the end up at the Federal Reserve again -- -- we you know jump warehouse but -- -- -- the thing is is that we do there's new legislation now that all of these too big to -- companies have to face that's coming down in congress and that is you we did the new legislation that would have -- 15% of their equity tents.
Their assets and that's a big deal tackle and sack the saying if that legislation is enacted the big banks.
Would -- basically -- damper on buybacks and dividends and for years in fact hundreds of billions of dollars but be redirected toward.
You know the capital -- and not toward buybacks and dividends so that's kind of putting a chill.
On on the banks and and what they think they have to do with that deal with and too big to fail.
Well ultimately impact fees are the share price for the financial -- -- thought -- meant to we weren't trek -- think they will impact Fisher Price early insurance industry have lobbied heavily against it didn't like that they didn't wanna they felt that they are being blamed for AIG.
And effectively they they are saying that you know we're safer than thanks so why do we have to be cited -- -- they'll say you know we may hear from credential.
They're now contemplating whether or not to contestants say you know what weren't we should be listed among these other non bank that's too big to fail we'll be -- -- just overall kind of amazing to me that we still have this phrase and our vernacular talk toughness too big to fail to your point.
What volatility in about trailer up its infighting and -- attorney or however attorney general Eric Holder testified for congress he said.
We can't prosecute them because they're too big to fail they're the dangers that would destabilize the system -- even -- to prosecute them.
So instead we have this big regime now underway for the financial stability oversight council now.
Thanks you're watching this month.
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