[33673] in North American Network Operators' Group
Re: Too big to fail?
daemon@ATHENA.MIT.EDU (Marshall Eubanks)
Thu Jan 18 22:11:23 2001
Message-ID: <3A67AE57.B8398123@21rst-century.com>
Date: Thu, 18 Jan 2001 22:02:48 -0500
From: Marshall Eubanks <tme@21rst-century.com>
Reply-To: tme@21rst-century.com
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To: Sean Donelan <sean@donelan.com>
Cc: smb@research.att.com, nanog@merit.edu
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Sean Donelan wrote:
>
> Remember during the last deregulation cycle. When the Savings & Loan
> and Bank industries were "deregulated" one open question was: are
> there banks considered too big to fail. The problem with that doctrine
> is it warps management's risk analysis. Instead of appropriate investments,
> management makes excessively risky decisions in an attempt to achieve
> short-term returns and maximize shareholder value.
>
> Is PG&E too big to fail?
>
>
I believe this is referred to as a "moral hazard"
Marshall Eubanks
Multicast Technologies, Inc.
10301 Democracy Lane, Suite 201
Fairfax, Virginia 22030
Phone : 703-293-9624 Fax : 703-293-9609
e-mail : tme@on-the-i.com http://www.on-the-i.com
