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Sadly, Too Big To Fail Is Not Over

Friday, August 2, 2013 - 5:55 AM
By Simon Johnson

I share the view of Richard Fisher of the Federal Reserve Bank of Dallas, who, speaking of too-big-to-fail institutions, said he did not “have much faith in the living will process to make any material difference in risks and behaviors — a bank would run out of liquidity (not capital) due to reputational risk quicker than management would work with regulators to execute a living will blueprint.”

Treasury Secretary Jack Lew said recently, “It’s unacceptable to be in a place where too big to fail has not been ended.” Sadly, that is where we are today.

http://economix.blogs.nytimes.com...r=1&am
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