Labor's share (the ratio of personnel costs to added value) at large
firms has plummeted in recent years due to restructuring drives.
Executives at large
corporations spend 80 percent of their time managing the structure of the corporation, and only 20 percent on the business review process," he says.
A good portion of the expansion, however, was at large
banks (those with assets of $5 billion or more).
Moreover, the ratio of tier 1 capital to risk-adjusted assets was much lower at large
banks, mainly because of the greater reliance by these banks on subordinated debt (chart 10).
Under the too-big-to-fail doctrine, uninsured deposits at large
banks typically have been protected in full--through purchase and assumption resolution methods--while those at smaller institutions generally face a greater risk of some loss.