Too Big to Fail The Hazards of Bank Bailouts

by Stern, Gary H.; Feldman, Ron J.; Volcker, Paul A.,

• ISBN13: 9780815703044
• ISBN10: 081570304X
• Format: Paperback
• Copyright: 2009-03-27
• Publisher: Brookings Institution Press

Summary

"This book should be required reading for

Author Biography

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.

Table of Contents

Foreword	p. vii
Preface to the Paperback Edition	p. xi
Preface to the First Edition	p. xix
Introduction: Our Message and Methods	p. 1
Warnings	p. 9
What Is the Problem?	p. 11
Why Protection Is Costly	p. 23
How Pervasive is TBTF?	p. 29
Why Protect TBTF Creditors?	p. 43
The Growth of TBTF Protection	p. 60
Testing Our Thesis: The Cases of Not Too Big to Fail	p. 80
Options	p. 87
Can the Problem Be Addressed?	p. 89
Creating the Necessary Foundation	p. 98
Reducing Policymakers' Uncertainty	p. 111
Limiting Creditor Losses	p. 124
Restricting Payment System Spillovers	p. 132
Alternatives for Managing Too Big to Fail	p. 141
Summary: Talking Points on Too Big to Fail	p. 146
Appendixes
FDICIA: An Incomplete Fix	p. 149
Penalizing Policymakers	p. 159
Supervision and Regulation	p. 168
Increasing Market Discipline	p. 179
References	p. 197
Index	p. 223
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