on Outinandstg read, I just passed this onto a colleague who was doing a little research on that. And he really bought me lunch because I discovered it for him smile So let me rephrase that: Thanks for lunch!
Timmy’s no dummy. He’s simply saying what he MUST say. Because: The banks can’t increase capital, where would it come from?The banks can’t de-leverage, their borrowers can’t pay them back.But…..Timmy’s faith in a resolution authority kicks the can down the road. And maybe, just maybe, if he closes his eyes and prays really really hard, it will never ever be tested by the failure of a large bank.
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