Free Republic

  Too interconnected to fail = too big to fail: What is in a leverage ratio? Daniel Gros 26 January 2010 Did allowing financial institutions to become “too big” play a role in the financial crisis? This column argues that being “too interconnected” is also a factor, and that US accounting standards should recognise gross derivatives exposure on the balance sheet to make this interconnectedness, and the resulting exposure, clear. By now there is general agreement that a financial institution can not only be “too big”, but also “too interconnected” to fail. But how do we measure what it is...

The relics have been buried under the sand for centuries. The deadly tsunami could have uncovered the remains of an ancient port city off the coast in southern India. Archaeologists say they have discovered some stone remains from the coast close to India's famous beachfront Mahabalipuram temple in Tamil Nadu state following the 26 December tsunami. They believe that the "structures" could be the remains of an ancient and once-flourishing port city in the area housing the famous 1200-year-old rock-hewn temple. Three pieces of remains, which include a granite lion, were found buried in the sand after the coastline receded...