- 230 pages
- English
- PDF
- Available on iOS & Android
eBook - PDF
About this book
The potential failure of a large bank presents vexing questions for policymakers. It poses significant risks to other financial institutions, to the financial system as a whole, and possibly to the economic and social order. Because of such fears, policymakers in many countriesādeveloped and less developed, democratic and autocraticārespond by protecting bank creditors from all or some of the losses they otherwise would face. Failing banks are labeled ""too big to fail"" (or TBTF). This important new book examines the issues surrounding TBTF, explaining why it is a problem and discussing ways of dealing with it more effectively.
Gary Stern and Ron Feldman, officers with the Federal Reserve, warn that not enough has been done to reduce creditors' expectations of TBTF protection. Many of the existing pledges and policies meant to convince creditors that they will bear market losses when large banks fail are not credible, resulting in significant net costs to the economy. The authors recommend that policymakers enact a series of reforms to reduce expectations of bailouts when large banks fail.
Gary Stern and Ron Feldman, officers with the Federal Reserve, warn that not enough has been done to reduce creditors' expectations of TBTF protection. Many of the existing pledges and policies meant to convince creditors that they will bear market losses when large banks fail are not credible, resulting in significant net costs to the economy. The authors recommend that policymakers enact a series of reforms to reduce expectations of bailouts when large banks fail.
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Please note we cannot support devices running on iOS 13 and Android 7 or earlier. Learn more about using the app.
Yes, you can access Too Big to Fail by Gary H. Stern,Ron J. Feldman in PDF and/or ePUB format, as well as other popular books in Business & Business General. We have over one million books available in our catalogue for you to explore.
Information
Table of contents
- Cover
- Table of Contents
- Foreword
- Preface
- Introduction: Our Message and Methods
- Part One: Warnings
- What Is the Problem?
- Why Protection Is Costly
- How Pervasive Is TBTF?
- Why Protect TBTF Creditors?
- The Growth of TBTF Protection
- Testing Our Thesis: The Cases of Not Too Big to Fail
- Part Two: Options
- Can the Problem Be Addressed?
- Creating the Necessary Foundation
- Reducing Policymakers' Uncertainty
- Limiting Creditor Losses
- Restricting Payment System Spillovers
- Alternatives for Managing Too Big to Fail
- Summary: Talking Points on Too Big to Fail
- Appendix A: FDICIA: An Incomplete Fix
- Appendix B: Penalizing Policymakers
- Appendix C: Supervision and Regulation
- Appendix D: Increasing Market Discipline
- References
- Index