Tokyo's ailing power company is "too big to fail" says TUJ expert

Stricken Tokyo Electric Power (TEPCO) is "too big to fail," analysts say, not only because it powers Japan's economic heart but also because its collapse would create turmoil for the country's financial system. "The government has made it clear that TEPCO must remain solvent in order to avoid blackouts and to avoid skyrocketing electricity prices," said Paul J. Scalise of Temple University, Japan Campus. The situation has inevitably drawn comparisons to the U.S. financial crisis of 2008. "TEPCO is as large, if not larger, than some of the banks in question," said Scalise.
May 13, 2011 | Agence France-Presse