The Banksters Want Taxpayers to Stay on the Hook!

It's simply amazing to me that the banksters continue to want the taxpayers to subsidize their endless series of bad decisions and high-risk undertakings. And the Tea Party GOP wants to reduce regulations on these shysters.  In a paper entitled Tail risks and contract design from a financial stability perspective, Bank of England economist Paul Fisher observes that

Some banks have told us that they think they should not be required to hold capital and liquidity to deal with such extreme tail events –leaving the public sector to be the capital provider of last resort. But that leads directly to moral hazard and excessive risk-taking. Tail events seem to happen far more often than people assume15 and if the risks were properly acknowledged at the outset, many structures would be avoided or risks re-structured so as to limit losses in the event of tail risks. That has obvious implications for financial stability.

But the kicker is the snarky footnote on the page...

How many ‘once-in-a-lifetime’ events happen to us every year?

Indeed...