Banks have allegedly engaged in taking risks greater than they otherwise would because of a belief that they would be bailed out by the government, possibly causing or contributing to the financial crisis of 2007-8, because large banks believe they are too big to fail
The only other nonbank to be so designated as too big to fail
, GE Capital, restructured and had the SIFI label removed in 2016.
class="MsoNormalHow Facebook performs over the next few months and subsequently years, and how it comes out, will really test the too big to fail
(1.) For an excellent analysis of too big to fail
, see Stern and Feldman (2009).
* Whether the availability or use of OLA leads or could lead to excessive risk taking on the part of creditors, counterparties, and shareholders, or otherwise leads market participants to believe that a financial company is "too big to fail
In my experience, however, other countries often seem to be less concerned about Too Big to Fail
as an issue than we are in the U.S.
Thus, the goal to end too big to fail
and protect the American taxpayer by ending bailouts remains just that: only a goal."
Through the combined efforts of the industry and global regulators, we now have the tools in place to ensure that no financial institution is too big to fail
. While we appreciate Mr.
'Too big to fail
' traditionally refers to a bank that is perceived to generate unacceptable risk to the banking system and indirectly to the economy as a whole if it were to default and be unable to fulfill its obligations.
A nonprofit consumer advocate on Thursday challenged extensive redactions and sealed filings in MetLife Inc.'s lawsuit in Washington federal court over the company's designation by financial regulators as "too big to fail
The idea that some firms may be too big to fail
appears to go back as far as 1975 in connection with Lockheed Corporation and the financial difficulties experienced by that firm at the time.