Bank failure graph putting things in perspective

This was tweeted by Barry Ritholtz this morning.

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Is there any truth to the rumor that Jerome Powell :skull: asked Elon Musk :imp: the use the Giga Presses to bail out theses smaller banks?

The Captain :star_struck:

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It doesn’t look as though he adjusted for inflation. WaMu had $328 billion in assets under management, which would be $450 billion today.

DB2

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Hmmm… where is Lehman Brothers with 600b+ assets?

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Was Lehman Bros. a bank?

No but they were doing shadow banking…

and shadow insurance. They were issuing credit default swap which is a form of insurance which happens to be illegal under insurance law.

  • A credit default swap (CDS) is a contract between two parties in which one party purchases protection from another party against losses from the default of a borrower for a defined period of time.

Credit Default Swaps(CDS,a%20defined%20period%20of%20time.

The Captain

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Most definitely:

Before filing for bankruptcy in 2008, Lehman was the fourth-largest investment bank in the United States (behind Goldman Sachs, Morgan Stanley, and Merrill Lynch), with about 25,000 employees worldwide.[3][4] It was doing business in investment banking, equity, fixed-income and derivatives sales and trading (especially U.S. Treasury securities), research, investment management, private equity, and private banking.

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Here is the source of the image.

And it includes the data and the script for drawing the graph.

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