Dutifully, global regulators, including in the U.S., required that TBTF
firms demand that their counter-parties sign the Protocol and waive their rights to escape contracts with seemingly doomed subsidiaries.
lists of TBTF
institutions because the designation can increase costs
Cetorelli and Traina (2018) study the extent to which the DFA living wills help address the TBTF
Guynn, Framing the TBTF
Problem: The Path to a Solution, in Across the Great Divide: New Perspectives on the Financial Crisis, Chapter 13, 281-301 (Martin Neil Baily Sc John B.
The Swiss National Bank has said that UBS (UBSG.S) and Credit Suisse (CSGN.S) have more work to do to address too-big-to-fail (TBTF
) emergency plans, according to Reuters.
Bank size, which is calculated as the natural logarithm of total assets, is included to capture differences in risk management capabilities (Demsetz and Strahan 1997; Elsas, Hackethal, and Holzhauser 2010) and in the possibility of public bailouts (i.e., TBTF
policy) between large and small banks.
unusual, and the costs of such failures are modest, will the TBTF
And since the Fed and its TBTF
banking cohorts and congressional allies thwarted Representative Ron Paul's efforts to get a genuine audit of the Fed, we do not know where or how those staggering sums were, and are, being used.
(10) After three annual submission-and-review cycles since 2012, it has become clear that the nation's largest banks are still TBTF
Some have already suggested that California is "too-big-to-fail" (TBTF
), and that its economic collapse could dramatically interfere with the economies of neighboring states, regions, the country, or even the world.
Beck (2008) raises the argument that while consolidation has often been justified by efficiency, the process of consolidation and the resulting financial conglomerates have given rise to stability concerns--the size, complexity of these institutions might make it difficult for authorities to intervene and potentially close such institutions, a phenomenon known as too big to fail (TBTF