European banks are too big for any single government to bail out

Evidence

Being levered up, in some cases forty to one or more, means that a turn of a few percentage points against their assets can leave them insolvent. As a consequence, rather than being too big to fail, European banks, when you add their liabilities together, are “too big (for any one government) to bail,” a phenomenon that the euro, as we shall see, only exacerbates. — Mark Blyth, Austerity, 37

Categorization

• XREF: Inverts the familiar US ‘too big to fail’ formulation; connects to the euro’s structural design flaw literature. — connects to: European austerity serves to reserve sovereign balance-sheet space for too-big-to-bail bank rescues — Mark Blyth, Austerity: The History of a Dangerous…, 617; European banks are collectively too big for any sovereign to bail, forcing austerity instead — Mark Blyth, Austerity: The History of a Dangerous…, 207; European banks were too large for any national sovereign to rescue — Mark Blyth, Austerity: The History of a Dangerous…, 231 (+6 more)

Broader Connections

• European banks are collectively too big for any sovereign to bail, forcing austerity instead #corroborates (0.95) — Mark Blyth, Austerity, 207
• European banks were too large for any national sovereign to rescue #corroborates (0.92) — Mark Blyth, Austerity, 231
• Eurozone banking integration outpaced national resolution, producing too-big-to-bail systemic risk #expands (0.88) — Mark Blyth, Austerity, 227
• European austerity is a bait-and-switch to save banks from themselves without admitting it #responds-to (0.80) — Mark Blyth, Austerity, 208
• Twenty large European banks had cross-border exposures exceeding their entire core capital #expands (0.78) — Mark Blyth, Austerity, 796
• Euro governance rules target sovereigns while entirely ignoring private bank risk #corroborates (0.75) — Mark Blyth, Austerity, 254
• Bailing out bankers while imposing austerity damaged faith in politicians #responds-to (0.75) — Yanis Varoufakis, Technofeudalism, 392
• Scandinavian 1990s bailouts removed bankers while bailing out banks #contradicts (0.72) — Yanis Varoufakis, Technofeudalism, 929