Why Banks Failed

Despite Hank Paulson's recent re-emergence basking in the glory of his miracle, the 'too-big-to-fail' problem is bigger and more prone to fail than ever before (M&A dominance, capital cost advantages, major AFS loss potential and huge reliance on repo funding). The following excellent infographic from The FT succinctly summarises the reasons why banks failed last time... and what lessons - if any - we have learnt...

 

 

Source: The FT