Too big to fail (TBTF)
Central clearing a tricky fix for over-the-counter derivatives
Central clearing might solve some of the problems with over-the-counter derivatives, but it is by no means a straightforward solution, and could raise some additional problems
Too networked to fail?
The need to craft special treatment for banks that are too big or interconnected to fail has long been a concern for regulators, but of equal importance is the challenge of identifying which institutions should be subjected to such measures. How can…
The problem is severity
Financial reformers talk endlessly about the too-big-to-fail problem, but they often fail to address the heart of the issue, argues David Rowe
Higher ground
Plans are afoot among global regulators to impose tougher regulatory requirements on large and systemically important firms, including higher capital charges. Will they succeed in curtailing systemic risk? Mark Pengelly investigates
The Bair necessities
Federal Deposit Insurance Corporation chairman Sheila Bair has argued that systemically important financial institutions should hold more capital as a disincentive to growth, while a new entity should be set up to manage the orderly resolution of…
Building up Basel II
In an exclusive interview with Risk, Stefan Walter, secretary-general of the Basel Committee on Banking Supervision, discusses everything from capital to pro-cyclicality, while outlining the reform agenda for Basel II. Rob Davies reports
Drastic times
There is a growing consensus that large, global banking groups pose a threat to financial stability. Some have suggested large financial services groups be split up to focus on traditional markets and banking business - but is this the answer? By Duncan…
Basel releases framework for assessing systemic risk of large banks
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Drastic times
There is a growing consensus that large, global banking groups pose a threat to financial stability. Some have suggested large financial services groups be split up to focus on traditional markets and banking business - but is this the answer? By Duncan…