3 ms·

For what it's worth, there is existing work in progress to address "too big to fail": http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9733463/To

• arethuza 14y ago
  From what I can see that sounds more like a controlled way of handling a bank that is already failing rather than stopping banks getting to the point of failing.
  • haberman 14y ago
    No one can guarantee that a bank won't fail. Nor should anyone. Banks are money-making enterprises; to allow private parties the spoils of risk while insuring them against any losses is anti-capitalist, and is at the heart of what creates perverse incentives for bankers. Fixing "too big to fail" isn't about making everything safe enough that banks never fail, it's about allowing an insolvent bank to fail without causing a domino effect that affects the whole economy.