Many economists have argued that it is necessary to reorganize big banks that require sustained subsidies or are close to insolvency. By wiping out the shareholders and giving haircuts to bondholders, the resulting reorganized banks will be financially sound and capable of leading the country...

The policy of too big to fail arose in part from pressures created by the lack of satisfactory bankruptcy arrangements for banks. It prevented market forces from closing banks and protected all uninsured depositors of large banks from loss in the event of failure. The consequent risk-taking...

Big is bad. At least that has become the view of many individuals about big banks ever since the financial crisis of 2007-2009. The fear is that if a big bank gets into trouble, its problems will infect other financial institutions and threaten the entire economy. Historically, however, big...

This paper empirically analyzes the determinants of banks' systemic importance. In constructing a measure on the systemic importance of financial institutions we find that size is a leading determinant. This confirms the usual "Too big to fail" argument. Nevertheless, banks with size above a...

링크를 클릭하시면, 이 보고서의 한국어 버전을 보실 수 있습니다. 'http://ssrn.com/abstract=2919126' http://ssrn.com/abstract=2919126Designed to resolve failed banks via loss-sharing by shareholders and creditors, bail-ins were introduced to substitute bailouts, which are...

Since the 2008 financial crisis, the problem of financial institutions being "too big to fail," or TBTF, has been front and center in the public debate over the reform and regulation of the financial industry. Commentators across the political spectrum decried bailouts of the biggest Wall Street...

In view of preliminary lessons learnt from the global financial crisis since 2007, the paper develops a conceptual framework for the functional analysis of bank insolvency regimes and, against this background, analyses a package of reforms adopted in Germany in 2010

This essay lays out the basics of the “too-big-to-fail” (TBTF) phenomenon: What it means; why it is a problem; the central role that TBTF financial institutions played in the financial crisis of 2008; and why better prudential regulation than was present prior to 2008 is needed for the future