This paper is the second in a series to take a deep dive into the fundamental issues that underlie the “Too Big to Fail” debate. The paper examines whether large banks benefit disproportionately from federal deposit insurance and liquidity programs, or from the various types of extraordinary support provided by the U.S. government in response to the historic challenge facing the economy in 2008-09.
New Large Bank Resolution Requirements Would Be Costly and Unnecessary
U.K. Pension Fund Debacle Illustrates How Government-Created Moral Hazard Can Lead to Systemic Risk
Imposition of SPOE and TLAC Requirements on Large Regional Banks is Unnecessary to Promote Financial Stability
Applying Global Bank Resolution Rules to Regional Banks Would Undermine Bipartisan Tailoring Efforts, Increase Costs for Borrowers and Produce No Tangible Public Benefit
On Bank Mergers, the Benefits of a Competitive Industry Are Clear and the Regulatory Standards Are Appropriately Stringent
