* Prevent systemic (too-big-to-fail
) institutions from failing by bailing them out.
When the 2007 global financial downturn started in the US, there were talks about the "too-big-to-fail
" banks that made the economy fragile.
Treasury Erases 'Too-Big-to-Fail
' Label on Prudential
BANKING AND CREDIT NEWS-October 18, 2018--Prudential exits too-big-to-fail
M2 EQUITYBITES-October 18, 2018--Prudential exits too-big-to-fail
Global Banking News-October 18, 2018--Prudential exits too-big-to-fail
problem in banking is the unwillingness of regulators to close a large troubled bank because of a belief that the short-term costs of a bank failure are too high.
Despite its of goal of keeping too-big-to-fail
banks in check, many in the financial industry feel that Dodd-Frank missed the mark--failing to slow the proliferation of mega-banks while simultaneously stifling the growth of small- and medium-sized banks.
New York-based MetLife was the only company to challenge the too-big-to-fail
status in court, Kandarian noted, and the "victory has preserved our ability to remain on a level playing field with others in the industry."
Also, remedying the "too-big-to-fail
" element in reviving the Act, "trying to break up the big banks because the big banks had to get bailed out this last time around -- big and small banks have gotten bailed out before," Ireland continued.
McWatters added that this approach would require a deep resolve to stand the heat from the too-big-to-fail