The recent global financial crisis reflects numerous breakdowns in the prudential discipline of financial firms. This paper discusses ways to strengthen micro- and macroprudential supervision and restore credible market discipline. The discussion notes that microprudential supervisors are...

Make failure tolerable / George P. Shultz -- Financial reforms to end government bailouts as we know them / Paul Volcker -- Fifty years in the business : from Wall Street to the Treasury and beyond / Nicholas F. Brady -- Defining systemic risk operationally / John B. Taylor -- Lessons learned...

"This paper models and estimates ex ante safety-net benefits at a sample of large banks in US and Europe during 2003-2008. Our results suggest that difficult-to-fail and unwind (DFU) banks enjoyed substantially higher ex ante benefits than other institutions. Safety-net benefits prove...