Chapter 14: using bankruptcy law to solve too-big-to-fail
Too-big-to-fail: the next Chapter
In April 2010, I argued that efforts to eliminate the too-big-to-fail problem had been overly focused on minimising the likelihood rather than the severity of such failures (Risk April 2010, page 73). More restrictive and more complex capital requirements, new liquidity rules and a flood of new and detailed provisions surrounding stress testing and credit procedures are all designed to prevent systemically important financial institutions (Sifis) from imploding. Harsh experience should tell us
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