Sat, Sep 14, 2013, 9:20AM EDT
Remember Hank Paulsen? He was the United States Secretary of the Treasury during the financial crisis.
We don’t hear much about him domestically, but he just shared his concerns about another financial crisis with the German finance/economy newspaper Handelsblatt.
Literally translated, Paulson warns of another financial ‘firestorm’ sparked by one of the following factors:
Too big too fail banks, the ballooning derivatives market, hardly regulated but rapidly growing shadow banks, and the growing influence of Fannie Mae and Freddie Mac could trigger another ‘firestorm’ at any moment.
Below are some staggering stats and numbers (source:Handelsblatt newspaper):
Too Big to Fail
The five biggest US banks have amassed $8.3 trillion in assets. That’s $2.5 trillion more than in 2007. The chart below compares the assets the five biggest banks held in 2007 with today. JPMorgan Chase is 74% bigger today than in 2007, BofA 44%, Wells Fargo 177%, and US Bancorp 66%. Only Citigroup has shrunk.
Read more about Hank Paulson Warns Of Another Financial Crisis
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