A Balanced Discussion on how to Address:

tbtf

Since the beginning of the current global financial crisis, the role of large financial institutions in stabilizing and destabilizing economies has proven controversial.  “Systemic risk” and “Too Big To Fail” are again the subject of intense debate on Main Street, Wall Street and in the halls of Congress.

Below, you can find readings, including a House bill, and a previously video recorded panel discussion that features some of the leading voices on this issue.

Recommended Reading

The “subsidy reserve” plan provides a market-based solution to addressing banks deemed “To Big To Fail”.  You can read more here, including the House bill that outlines this plan:

On April 23, 2013, American Banker hosted a roundtable with policy makers, stakeholders, and independent experts to discuss policy solutions to Too Big To Fail. In attendance from the Center’s Board of Advisors were Ernest Patrikis, Partner, White & Case, Karen Shaw Petrou, Managing Partner, Federal Financial Analytics, Inc., and Paul Saltzman, President of the Clearing House Association. Also in attendance was the Center’s Director, Cornelius Hurley.  To read more about the roundtable discussion here:

Panel Discussion

The Center provided a forum for researching and exploring different ideas for how to address Too Big to Fail.  As part of this ongoing discussion, a panel discussion was held March 26 that included some of the leading voices on these critical issues.  Panelists were:

  • Harvey Rosenblum, Executive Vice President and Director of Research, Federal Reserve Bank of Dallas;
  • Paul Saltzman, President of The Clearing House Association; EVP & General Counsel of The Clearing House Payments Company;
  • Laurence Kotlikoff, Professor of Economics at Boston University and Research Associate at the National Bureau of Economic Research;
  • Cornelius Hurley, Director, Boston University Center for Finance, Law & Policy.

The discussion was moderated by William P. Mayer, a Partner at Goodwin Procter LLP.

Watch this video on YouTube

Materials from Panel Discussion

Vanquishing TBTF: Rhetoric Versus Reality and the Value of Systemically Important Banks in the Global Financial System – Paul Saltzman

“Dodd-Frank isn’t working. Time for a better, simpler approach to reducing risk. Call it ‘too small to save.’” – Richard W. Fisher and Harvey Rosenblum

“The Economic Consequences of the Vickers Commission” – Laurence Kotlikoff

“The Subsidy Reserve Plan for solving the Too Big To Fail Problem: An Agenda for the Coming Administration.” – Cornelius K. Hurley