Just to round out the sketch of what’s happened, I add the following. Large financial firms in distress have received something like $50- billion in recapitalization funds from sovereign wealth funds. So far there have been very few bank failures, five according to the FDIC since February 2007, but apparently 75 more institutions are on the problem list. One of the reasons why the crisis hasn’t been more damaging is that most banks, especially large ones, went into the crisis with high bank capital. A third feature of the ongoing crisis follows from the preceding one. Faced with clear evidence that various parts of the financial markets.
