As most can recall, in
2008, banks — the ones deemed “too big to fail” — were
supported by one of the largest government bailouts in
world history. Expect to see another banking crisis
soon, but this time, it’ll be different.
There won't be bailouts this time because that option is
now off the table. Back in 2018, the lawmakers behind
Dodd-Frank assured taxpayers that they wouldn’t be the
ones footing the bill if a banking crisis was to occur
again. But here’s the catch: while bailouts aren’t an
option anymore, taxpayers will <strong>still </strong>be
footing this bill.
That is because this time around, bail-ins will be the
new tool of choice for financial watchdogs, as they
attempt to avert a financial crisis that is not only
inevitable but imminent.
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