What happens if bank of america collapses

The city government of Shenzhen, or the central government in Beijing, has not rushed to bail out Evergande most likely in the belief that the company itself is to blame for the predicament - too much leverage and squandering of borrowed funds ploughed into auto making and other fringe businesses and budgeting largesse.

Authorities probably want the case to serve notice to investors at home and abroad, that they need to do their due diligence and enforce accountability on debtors. However, the central government is almost certain not to tolerate a possible bankruptcy of Evergrande to spill over to draw down the broader Chinese economy, as the central bank has done numerous pressure tests since the global financial crisis, which was caused by the sub-prime housing debts in the US.

Last year, the central bank required property developers to bring down their debt levels below certain thresholds before they are able to borrow more money from financial institutions. And, many Chinese commercial banks have ascertained their exposure to Evergrande is restricted. So, debt-beleaguered Evergrande is unlikely to produce a firestorm and disrupt China's financial system.

In addition, both the government and the central bank have plenty of policy tools, including easing overall monetary policy, to tide over Evergande if it goes under. But of course, the last resort is to bail it out and restructure the company, as China has done with other troubled corporations like HNA, Huarong and Baoshang Bank.

The author is an editor with the Global Times. Personal Finance. Your Practice. Popular Courses. Top Stocks Top Stocks. Stocks Top Stocks. Table of Contents Expand. Bear Stearns: The Harbinger.

Morgan Stanley and Goldman Sachs. The Bottom Line. The U. Bear Stearns was picked up by JP Morgan and no longer exists. As the financial crisis got worse, the U. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

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Bailout Money Helps Failing Businesses and Countries A bailout is an injection of money from a business, individual, or government into a failing company to prevent its demise and the ensuing consequences. Bear Stearns Bear Stearns was an investment bank that collapsed during the subprime mortgage crisis in Read what happened after the Bear Stearns bailout.

Mortgage-Backed Security MBS A mortgage-backed security MBS is an investment similar to a bond that consists of a bundle of home loans bought from the banks that issued them. What Is a White Shoe Firm? White shoe firm is an old-fashioned slang term for the most prestigious professional employers. It once referred only to law practices, but now includes other industries. Congress in to oversee for the U. Treasury's actions aimed at stabilizing the U. Choose any one aspect or question about the crisis which has attracted attention, and explain the findings of research on this question.

Financial Crisis When analyzing causes of the global financial crisis and its specific symptoms, it is clear that the deepening of globalization processes and high level of internationalization of the world economy determined the significant losses of national financial systems and slowed.

However, the Great Depression erupted at a full force the early s; an event that Walton and. Instead of seeing Amazonian land solely as.

The Collapse of Bank of America: The largest banking institution in the United States, Bank of America, has been characterized with numerous controversies in the recent past. While the institution only got bigger since the financial crisis and government intervention through bailouts, Bank of America headed towards collapse.

In , Bank of America experienced several protests of its branches by various groups like National People's Action, US Uncut and other progressive activists Jaffe par, 1.

These protests were fueled by the groups' anger at Bank of America's tax dodging, huge bonuses that were paid after government bailouts, foreclosures, and other harmful practices.

These protests contributed to increased concerns on whether the too-big-to-fail behemoth would really collapse. Giannini" par, 3. During its initial years, the financial institution served the needs of several immigrants settling in America in that period.