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No. I don't think so. Banks such as Wells Fargo, JP Morgan and Goldman Sachs should not bankrupt at all. They are solvent and they have no reason to go through bankruptcy at all. Lehman Brothers, or Bear Stearn, has no reason to survive as every cent of equity has been lost and some more, so either they got bought out(JP Morgan uses its own equity to continue Bear Stearn's business) or they bankrupted(the creditors took loss to cover the short). Citi Group was left with so little equity(solvent, but not able to continue the business) that it required a huge capital injection from the government, but no creditors took loss(exceptional cases aside).
ICBC(the group/holding company) has oversea operations(subsidiaries) which take deposit in foreign currencies and lend in foreign currencies. Additionally, it might issue foreign currency debt for oversea or domestic operations. But whether the ICBC(the China bank subsidiary, not the bank group) guarantees those foreign operations or foreign currencies debt is the question to be asked. When I am talking about the survival of ICBC, I am talking about ICBC the China bank subsidiary, not ICBC, the bank group/holding company.
Maybe you should expand your thesis on confidence crisis and foreign reserve. Broad statement does not make a discussion more meaningful.
The problem in Argentina and Russia has no bearing on China. The economic structure and dynamic is so different. Sorry that you have to expand further on Russia devaluing its currency as I don't see anything related to banks yet. If you are talking about how bad the economy in Argentina and Russia, there are too many causes which does not relate to the banks there.
There are many resources about AFC and I don't have to expand it any further personally. Anyway, we can't relive whatever happened in the past and try different methods. So let's focus more on the present?
When a company bankrupts, it bankrupts. The equity holders take the loss first and then the creditors if not enough. Pretending it not bankrupted does not make it not bankrupted, only transferring the wealth from someone else to another group of people which should take the loss. bankruptcy is not as scary as many people think. The solvent operating companies can continue to produce and serve. The bankrupted holding companies and subsidiaries can sell their assets including the solvent operation companies to repay the debt. The new owners can continue the profitable business and of course, the equity holders and maybe creditors will take a huge loss. Not every part of Lehman Brother bankrupted. Profitable business were sold to Barclays and other financial institutions to repay creditors. Much of Lehman Brothers' investment banking business is still alive in Barclays.
ICBC(the group/holding company) has oversea operations(subsidiaries) which take deposit in foreign currencies and lend in foreign currencies. Additionally, it might issue foreign currency debt for oversea or domestic operations. But whether the ICBC(the China bank subsidiary, not the bank group) guarantees those foreign operations or foreign currencies debt is the question to be asked. When I am talking about the survival of ICBC, I am talking about ICBC the China bank subsidiary, not ICBC, the bank group/holding company.
Maybe you should expand your thesis on confidence crisis and foreign reserve. Broad statement does not make a discussion more meaningful.
The problem in Argentina and Russia has no bearing on China. The economic structure and dynamic is so different. Sorry that you have to expand further on Russia devaluing its currency as I don't see anything related to banks yet. If you are talking about how bad the economy in Argentina and Russia, there are too many causes which does not relate to the banks there.
There are many resources about AFC and I don't have to expand it any further personally. Anyway, we can't relive whatever happened in the past and try different methods. So let's focus more on the present?
When a company bankrupts, it bankrupts. The equity holders take the loss first and then the creditors if not enough. Pretending it not bankrupted does not make it not bankrupted, only transferring the wealth from someone else to another group of people which should take the loss. bankruptcy is not as scary as many people think. The solvent operating companies can continue to produce and serve. The bankrupted holding companies and subsidiaries can sell their assets including the solvent operation companies to repay the debt. The new owners can continue the profitable business and of course, the equity holders and maybe creditors will take a huge loss. Not every part of Lehman Brother bankrupted. Profitable business were sold to Barclays and other financial institutions to repay creditors. Much of Lehman Brothers' investment banking business is still alive in Barclays.