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One of the Concerns Highlighted by the Recent fiNancial Crisis

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Essay

One of the concerns highlighted by the recent financial crisis, is the existence of banks that are 'too big to fail'.These banks, it is argued, carry with them an implicit guarantee that they will be saved in times of financial distress.How do you think the capital structure of these banks compares to that of the other banks, based on the optimal capital structure theories?


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