Too big to fail | FinReg21|Reforming Financial Services Regulation in the 21st Century

Top advisers preview government’s regulatory reform proposals

Monday 15 June 2009 21:06 | Managing Editor | 261 comments

President Obama’s top two economic advisers confirmed what has been systematically leaked in recent weeks – the administration won’t propose any radical structural changes in the U.S. financial regulatory system.

Fed official floats notion of limiting banks’ size

Monday 08 June 2009 22:42 | Managing Editor | 216 comments

U.S. policymakers should at least think about the idea of limiting the size or interconnectedness of financial institutions as it undertakes the task of regulatory reform, Daniel Tarullo, said in his first major speech as Fed governor.

Ten Reasons Why the Stress Tests Are “Schmess” Tests

Monday 11 May 2009 15:03 | Nouriel Roubini, Professor of Economics, Stern School at NYU | 192 comments

What shall we make of the results of the stress test and the “muddle-through” approach to the financial crisis? They may accelerate the creeping partial nationalization of the US financial system, exacerbate moral hazard distortions, not resolve the too-big-to-fail problem, increase fiscal costs, make the credit crunch last longer and lead near-insolvent financial institutions to become zombie banks. -- Nouriel Roubini, from Global EconoMonitor blog

Resolution authority would end ‘too-big-to-fail’ concept, FDIC chief says

Monday 27 April 2009 20:49 | Managing Editor | 186 comments

The administration’s proposed resolution authority for non-bank financial institutions would put an end to the outmoded concept of “too big to fail,” because it would provide a way for these institutions to fail without disrupting the entire financial system, said Sheila Bair, chairman of the Federal Deposit Insurance Corp.

Overcoming the “Too Big To Fail” Phenomenon

Monday 06 April 2009 | Ralph S. Tyler & Karen Stakem Hornig | 27 comments

We now know beyond doubt the enormous risks of having firms of a size, scale, and complexity, and that the functioning of the economy depends on their continued existence.