Too Big to Fail Is Too Big to Ignore

The way to end too big to fail is for regulators to require large financial companies to release more of their living wills, so the market can decide if they can fail in bankruptcy.
"So it is a difficult problem," Fed Chairman Ben S. Bernanke, right, said of too big to fail in 2008 transcripts. Photographer: Joshua Roberts/Bloomberg News

The Federal Reserve's open market committee transcripts from 2008, released Friday, are a stark reminder of the damage done by the financial crisis and the terrible choices policy makers face when large, complex financial institutions fail.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.