Fed’s Powell Sees Progress Ending Too-Big-to-Fail
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Federal Reserve Governor Jerome Powell said regulators are developing the tools needed to dismantle large and failing financial institutions to help remove the benefit from being seen as too big to fail.
“Today, the market still appears to provide a subsidy, of changing and uncertain amount, to very large banks to account for the possibility of a government bailout in the event of failure,” Powell said today in a speech in Washington. “The market needs to believe -- and it needs to be the case -- that every private financial institution can fail and be resolved under our laws without imposing undue costs on society.”