But even failed bets by large financial institutions can destabilize markets, financial institutions and the economy. Positions linked to distressed European sovereign debt in 2011 destroyed the U.S. financial institution MF Global (1, 2), its clients' money (via fraud), and thousands of jobs. Bear Stearns, Lehman Brothers and AIG are better examples of TBTF financial institutions that destroyed the system.
Here's more info via AFP: China Interbank Rates Surge Again Despite Cash Injection (chart after the jump).
Source: China Foreign Exchange Trade System (ChinaMoney.com.cn)