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.
According to news reports, the Presidents executive orders would call for a review of two key provisions under the Dodd-Frank WallStreet Reform law to prevent another too-big-to-fail
McWatters added that this approach would require a deep resolve to stand the heat from the too-big-to-fail
The Hague-based insurer was added last week to a list of nine too-big-to-fail
insurers compiled by global financial rule makers, meaning it could face a 10 percent increase in capital requirements and tighter regulation.
Chief executive of Secure Trust Bank Paul Lynam said "The only way to address the too-big-to-fail
problem is to foster the development of smaller banks".
This insensitivity of financing costs to risk will encourage too-big-to-fail
banks to take on greater risk.
That is the key pending aspect on ending too-big-to-fail
," said Andres Portilla, director of regulatory affairs at the Institute of International Finance, a Washington-based banking and insurance lobby.
Vincenz's statement came a couple of days after the cooperative lender was added to the list of too-big-to-fail
banks by the Swiss National Bank, meaning it would come under close scrutiny.
In the aftermath of the financial crisis, the Dodd-Frank Act was passed in part to end the perception that some institutions were too-big-to-fail
and to protect the taxpayer from the associated costs that it entailed.
Corporate governance incentives at too-big-to-fail
financial firms deserve systematic examination.