Film

Too Big to Fail

2011 · 2011

September 2008 from the Treasury and Fed side. If you are asked why Lehman was allowed to fail and AIG was not, this is where the difference between an illiquid firm and an insolvent one stops being abstract.

• Banking
• Crises and market history
• Risk

1 idea from this film

• FrameworkBanking

  Illiquid and insolvent are different problems with different rescues

  Lending cures illiquidity; only capital cures insolvency. Decide which problem you have before choosing the remedy.

  Questions about why Lehman was allowed to fail and AIG was not, about central bank lending, or about any distressed situation.