Bank failure graph putting things in perspective

This was tweeted by Barry Ritholtz this morning.


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.



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


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.


Here is the source of the image.

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