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Fed Governor Speech on Ending "Too Big to Fail"

Governor Jerome H. Powell At the Institute of International Bankers 2013 Washington Conference, Washington, D.C., March 4, 2013

  • Ending “Too Big to Fail” – “Today I will discuss “too big to fail” and the ongoing work since the financial crisis to end it. More than three years into this effort, there have been sweeping reforms to the regulation of large financial organizations in the United States and around the world. Substantial proportions of the new rules are designed to end the practice of bailing out such firms with taxpayer money. The too-big-to-fail reform project is massive in scope. In my view, it holds real promise. But the project will take years to complete. Success is not assured. In the meantime, some urge the adoption of more intrusive reforms, such as a return to Glass-Steagall-style activity limits, more stringent limits on size or systemic footprint, or a requirement that the largest institutions break up into much smaller pieces. I believe that public discussion and evaluation of these ideas is important. At a minimum, we need to thoroughly understand these alternatives in case the existing reform project falters.”
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