Comments on: “Too big to fail” alive and well in U.S. banking http://blogs.reuters.com/breakingviews/2010/11/23/too-big-to-fail-alive-and-well-in-u-s-banking/ Mon, 17 Jun 2013 22:19:50 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: breezinthru http://blogs.reuters.com/breakingviews/2010/11/23/too-big-to-fail-alive-and-well-in-u-s-banking/comment-page-1/#comment-5184 breezinthru Fri, 26 Nov 2010 04:48:23 +0000 http://blogs.reuters.com/columns/?p=4689#comment-5184 After the last election, the details of Frank/Dodd will be hammered out under the direction of the same party that insisted removing the bank tax from the original bill. Too big to fail will remain a problem well into the future. After the last election, the details of Frank/Dodd will be hammered out under the direction of the same party that insisted removing the bank tax from the original bill.

Too big to fail will remain a problem well into the future.

]]> By: walstir http://blogs.reuters.com/breakingviews/2010/11/23/too-big-to-fail-alive-and-well-in-u-s-banking/comment-page-1/#comment-5180 walstir Thu, 25 Nov 2010 19:30:11 +0000 http://blogs.reuters.com/columns/?p=4689#comment-5180 'Too big to fail' can be a significant issue where individual large incompetent and/or corrupt institutions fail and then cause a domino effect by collapsing other well run companies. This was not the case in the current financial crisis which was the result of a systemic fallacy believed by all institutions - namely that there would never be a widespread decline in a key asset category like housing. If there had been a larger number of smaller organizations; then 'too big to fail' would just have become 'too many to fail'. ‘Too big to fail’ can be a significant issue where individual large incompetent and/or corrupt institutions fail and then cause a domino effect by collapsing other well run companies. This was not the case in the current financial crisis which was the result of a systemic fallacy believed by all institutions – namely that there would never be a widespread decline in a key asset category like housing. If there had been a larger number of smaller organizations; then ‘too big to fail’ would just have become ‘too many to fail’.

]]>