Law Commons^™

The Dark Side Of Universal Banking: Financial Conglomerates And The Origins Of The Subprime Financial Crisis, Arthur E. Wilmarth Jr.

GW Law Faculty Publications & Other Works

Since the subprime financial crisis began in mid-2007, banks and insurers around the world have reported $1.1 trillion of losses. Seventeen large universal banks account for more than half of those losses, and nine of them either failed, were nationalized, or were placed on government-funded life support. Central banks and governments in the U.S., U.K. and Europe have provided $9 trillion of support to financial institutions to prevent the collapse of global financial markets.

Given the massive losses suffered by universal banks, and the extraordinary governmental assistance they have received, they are clearly the epicenter of the global financial crisis. …