Too Big to Fail: The Hazards of Bank Bailouts (Google eBook)

Front Cover
Brookings Institution Press, Jan 1, 2004 - Business & Economics - 230 pages
4 Reviews
The potential failure of a large bank presents vexing questions for policymakers. It poses significant risks to other financial institutions, to the financial system as a whole, and possibly to the economic and social order. Because of such fears, policymakers in many countries developed and less developed, democratic and autocratic respond by protecting bank creditors from all or some of the losses they otherwise would face. Failing banks are labeled "too big to fail" (or TBTF). This important new book examines the issues surrounding TBTF, explaining why it is a problem and discussing ways of dealing with it more effectively.
Gary Stern and Ron Feldman, officers with the Federal Reserve, warn that not enough has been done to reduce creditors' expectations of TBTF protection. Many of the existing pledges and policies meant to convince creditors that they will bear market losses when large banks fail are not credible, resulting in significant net costs to the economy. The authors recommend that policymakers enact a series of reforms to reduce expectations of bailouts when large banks fail.
  

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LibraryThing Review

User Review  - tonynetone - LibraryThing

Financial crisis since the 1930- so after Watergate in 70s- and the 1987 black Monday, has taken many unprecedented applied broadly to a variety of situations with heavy losses, statement actually ... Read full review

Review: Too Big to Fail: The Hazards of Bank Bailouts

User Review  - Connie - Goodreads

The definitive book on TBTF -- couldn't have gotten through my thesis without you! Read full review

Contents

V
xxv
VIII
xxvii
IX
12
X
18
XI
32
XII
1996
XIII
2016
XIV
2023
XX
2060
XXI
2068
XXII
2077
XXIII
2082
XXIV
2085
XXV
2095
XXVI
2104
XXVII
2115

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2025
XVIII
2034
XIX
2047

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About the author (2004)

Gary H. Stern is president and chief executive officer of the Federal Reserve Bank of Minneapolis. Ron Feldman is senior vice president at the Federal Reserve Bank of Minneapolis. Paul A. Volcker was chairman of the Federal Reserve from 1979 to 1987.