NEWS FLASH

Study Finds That Major American Financial Firms Would Need $500 Billion To Weather Another Economic Crisis | According to a study by Nobel Prize-winning economist Robert Engle, America’s biggest financial institutions would need more than $500 billion in fresh capital to survive another economic downturn. That’s nearly equal to the amount the six firms — JP Morgan Chase, Bank of America, Citigroup, Morgan Stanley, Goldman Sachs, and the insurance giant AIG — needed to weather the 2008 financial crisis. As Marketplace’s Heidi Moore put it, “What that tells us is very sobering. Systemic risk is alive and kicking.”