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Back to To the Point

To the Point

Are America's Banks Still Too Big to Fail?

Banks that got taxpayer bailouts paid back with interest, but financial authorities are warning it could happen again. Just five banks -- Goldman Sachs, JP Morgan Chase, Citigroup, Wells Fargo and Bank of America —now hold $8.5 trillion in assets. That's equal to 56 percent of the US economy, up from 43 percent six years ago.

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By Warren Olney • May 12, 2014 • 1 min read

Banks that got taxpayer bailouts paid back with interest, but financial authorities are warning it could happen again. Just five banks -- Goldman Sachs, JP Morgan Chase, Citigroup, Wells Fargo and Bank of America —now hold $8.5 trillion in assets. That's equal to 56 percent of the US economy, up from 43 percent six years ago. It's happened despite President Obama's call to "prevent the further consolidation of our financial system." Regulators are way behind in implementing new rules. Are the life-savings of depositors adequately insured? If a bank with $2 trillion takes too many risks will taxpayers have to be called on? What's the state of public opinion on two unpopular institutions: banks and the federal government? What about Obama's promise that banks would never again be "too big to fail?"

  • https://images.ctfassets.net/2658fe8gbo8o/AvYox6VuEgcxpd20Xo9d3/769bca4fbf97bf022190f4813812c1e2/new-default.jpg?h=250

    Warren Olney

    former KCRW broadcaster

  • KCRW placeholder

    Christian Bordal

    Managing Producer, Greater LA

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    Anna Scott

    Former KCRW Housing and Homelessness Reporter

  • KCRW placeholder

    Andrea Brody

    Senior Producer, KCRW's Life Examined and To the Point podcast

  • KCRW placeholder

    David J. Lynch

    Bloomberg News

  • KCRW placeholder

    Jared Bernstein

    Center on Budget and Policy Priorities

  • KCRW placeholder

    Carroll Doherty

    Pew Research Center for the People and the Press

    NewsNationalPolitics
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