J. Stiglitz, the Nobel Prize winning economist, said that bank problems are bigger now than pre - Lehman Brothers collapse before one year and that the U.S. has failed to fix the underlying problems of its banking system after the credit crunch.Stiglitz’s views follow those of former Federal Reserve Chairman P. Volker, who has advised Obama’s administration to curtail the size of banks, and Bank of Israel Governor S. Fischer, who suggested last month that governments may want to discourage financial institutions from growing “excessively.”
Find below some key points from the interview and click here to read the full article from Bloomberg:
“In the U.S. and many other countries, the too-big-to-fail banks have become even bigger.”
“The problems are worse than they were in 2007 before the crisis.”
“The leaders of the G-20 will make some small steps forward, given the power of the banks” and “any step forward is a move in the right direction.”
“The administration seems very reluctant to do what is necessary. Yes they’ll do something, the question is: Will they do as much as required?”
“We’re going into an extended period of weak economy, of economic malaise.”
