Relevant:
- UK Government Considering Plan to Recapitalize Banks
- Naomi Klein: Bailout = Bush's Final Pillage
- Financial crisis: [U.K.] Government could take shares in high street banks
- No more bailouts: BoE chief says banks won't be saved by taxpayers (UK)
- Mark Gongloff: Tim Geithner Admits Banks Bailed Out With Rigged Libor, Costing Taxpayers Huge Amount
2013-02-26 — bloomberg.com
... what if we told you that, by our calculations, the largest U.S. banks aren't really profitable at all? What if the billions of dollars they allegedly earn for their shareholders were almost entirely a gift from U.S. taxpayers?
...
Banks have a powerful incentive to get big and unwieldy. The larger they are, the more disastrous their failure would be and the more certain they can be of a government bailout in an emergency. The result is an implicit subsidy: The banks that are potentially the most dangerous can borrow at lower rates, because creditors perceive them as too big to fail.
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