Too-Big-To-Fail

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Too-Big-To-Fail

Describing a concept or policy that certain companies are so systematically important to an economy that the government must intervene if they are in danger of bankruptcy or other failure. The idea behind a too-big-to-fail policy is that these companies do business with too many other companies, and their failure will cause a cascade effect adversely impacting the economy on a grand scale. Supporters of too-big-to-fail policies argue that they maintain economic stability, while critics allege that they encourage unnecessary risk taking.
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(2.) Usage of the term "too big to fail" is first associated with a quote by Congressman Stewart McKinney, who during hearings into the bailout of Continental Illinois said.
Keywords: financial crises; too big to fail; systemically important banks; Dodd-Frank Act; Financial Stability Board; regulation and supervision
Read the full story at The National Law Journal: Consumer Group Fights Secrecy in MetLife's Suit Over 'Too Big to Fail' Designation.
(2) Subsequently, during Congressional hearings on Continental Illinois, the Comptroller of the Currency indicated that the eleven largest banks in the United States were too big to fail and would not be allowed to fail.
My favorite book is "Too Big to Fail" by Andrew Sorkin.
The recent news of the secret taping of conversations by Carmen Segarra at the Federal Reserve Bank of New York, suggest that the excessive risk-taking and moral hazard problem at the too big to fail financial institutions isn't fixed and won't be.
"After dealing with too big to fail, the next big section for the G20 is conduct and there will be a shift in attention to that issue," Huertas said.
"As Attorney General Eric Holder admitted to the Senate ..., when banks are considered too big to fail it is 'difficult to prosecute them....
Now it's a case of too big to fail, to big to go to jail.
The rationale for bailouts was that some banks were "too big to fail" and had to be saved in order to prevent disruption of the broader financial markets.
An interesting assumption is continuously being adopted by many of Egypt's intelligentsia as well as political analysts: "Egypt is too big to fail!" Several people have weaved their own theories touting Egypt's strategic position and weight in the region which will make it unwise for the "powers that be" to allow it to descend into chaos or fail.
Jeb Hensarling, R-Texas, chairman of the House Financial Services Committee, that too big to fail must be ended.