Ineteconomics

Easing Capital, Reviving Risk: The Quiet Return of Too Big to Fail

Less capital, more risk, familiar consequences. The latest move on big-bank rules suggests that too big to fail was never solved, only deferred.
The latest move to ease capital rules for large banks is being sold as a technical adjustment. It is nothing of the sort. It is another step in a long retreat from the post-2008 financial crisis promise to discipline concentrated financial power and protect the public from having to underwrite private risk.
That is the old too-big-to-fail bargain, dressed again in the language of efficiency.

Pages

Subscribe to Ineteconomics