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Analysis: Regulating against the TBTF problem

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Added by apesphere on 11 May 2009
From: www.latimes.com

Image courtesy krisandapril via Flickr

"Too big to fail" has become an acronym and so part of the cultural lexicon. Can we at least stop it being a permanent feature of the economic system?

Scholars from the Brookings Institution argue that actually many supposedly TBTF institutions could in fact be allowed to fail without serious economic repercussions. What is needed is a commitment not to bail them out.

Andrew Newton is the author of The Handbook of Compliance: Making Ethics Work in Financial Services