We set out a stylised framework for the policies enacted to address the risks posed by systemically important institutions (SIIs) and to counter the too-big-to-fail (TBTF) problem, examining conceptually how far supervisory and resolution policies are complementary or substitutable. The...

Regulatory forbearance and government financial support for the largest U.S. financial companies during the crisis of 2007–09 highlighted a “too big to fail” problem that has existed for decades. As in the past, effects on competition and moral hazard were seen as outweighed by the threat...

It has been now about four years since the eruption of the Financial Crisis of 2007, and major reforms of the banking system have been achieved in the U.S. with the enactment of the Frank-Dodd Act in 2010, and several legislative initiatives under way in the EU that are planned to be completed...