Comments on: Guest Post: Size Really Does Matter

By: Casey Nickols

Casey Nickols — Wed, 03 Jun 2009 06:26:13 +0000

cast of movie dreamgirls http://www.aguasemprocesso.pt/matureindex.html

By: ronald oliver

ronald oliver — Wed, 03 Jun 2009 06:16:08 +0000

jessica alba hardcore sex

By: Darlene Cummings

Darlene Cummings — Wed, 03 Jun 2009 06:14:19 +0000

ameature milf

By: Serena Jackson

Serena Jackson — Wed, 03 Jun 2009 06:10:43 +0000

large nipple galleries

By: Paula Price

Paula Price — Wed, 03 Jun 2009 06:08:54 +0000

nude female superheroes

By: John doe

John doe — Wed, 03 Jun 2009 06:05:18 +0000

sims 2 realistic nudes

By: will brandl

will brandl — Wed, 03 Jun 2009 06:03:29 +0000

pretty trannys

By: Robert Ellis

Robert Ellis — Wed, 03 Jun 2009 05:59:55 +0000

monticello maine webcam

By: Matthew Mowen

Matthew Mowen — Wed, 03 Jun 2009 05:58:38 +0000

pornstar preview

By: Carol Barton

Carol Barton — Wed, 03 Jun 2009 05:58:05 +0000

mbt cross trainer

By: justin doerner

justin doerner — Wed, 03 Jun 2009 05:54:30 +0000

phantom tuxedo studs

By: Random Links XXXXIX « Random Musings of a Deranged Mind

Random Links XXXXIX « Random Musings of a Deranged Mind — Mon, 25 May 2009 18:39:41 +0000

[...] Whence “Too Big to Fail”: How banks became TBTF…and the rest of us rationalized it. [...]

By: BenG

BenG — Mon, 11 May 2009 02:30:24 +0000

First, the numbers and bankers’ opinions always show that every deal that’s done makes sense. Subsequent events and studies show that most mergers fail and destroy value. In truth, the shotgun wedding of BoA and Merrill is only marginally worse than many public company mergers. The problem isn’t one of learning in business school but after school in business. The problem with very large organizations isn’t size, but purpose, focus and “culture”. Simply stated, these deals are the sports equivalent of combining a pass oriented offense with a running one and thinking you’ll have a better team. It just doesn’t work that way.

On the second point, if you allow them to get as large as they want, taxpayers have to pay the bill when they blow up. Not a good outcome. Banks at 30x leverage is asking for a disaster. The officers and directors should be required to put their personal assets and net worth on the line up front for these bets–bet they wouldn’t make them.

By: Hoi Polloi

Hoi Polloi — Fri, 08 May 2009 14:30:50 +0000

Studies prove that more than 90% of corporate mergers and acquisitions are falling short of their objectives. Most mergers are initiated by megalomanic CEO’s who overlook the vital intangible assets such as business culture, company strategics, human capital, company structure and corporate governance.

But what can you expect from people who only move in the highest management levels and are only use to look at computer models and balance sheets,,,

By: EKCP

EKCP — Thu, 07 May 2009 03:16:37 +0000

Professor Baxter’s post describes not just the growth of an industry but a change of its culture as well. While I agree that the arrogance of its leaders or even some plain misguided judgment of how gigantic banking corporations could avert risk needs to be addressed, I fear that too much attention is being paid to the “Too Big to Fail” topic and less to what actually brought global economies to their knees. Would hundreds of small banks rather than half a dozen large banks have made a whole lot of difference so long as CDSs were still unregulated? In 2006, the global economic output was $47 trillion while the amount of derivatives outstanding was $472 trillion. By 2007, the notional value of all OTC derivatives was just under $600 trillion. In essence, one hundred people taking out insurance on my mortgage (one asset) is unsustainable, regardless of how many banks are doing the trading. Wouldn’t the downturn of the housing market, causing mortgage defaults and the crash of CDSs have occurred no matter how many banks, big or small, were involved? Wouldn’t we still have had to prop up a banking industry in order to just have a banking industry while we figured out who to blame and what to change?