At least since the fall of 2008, leading economies’ officials have agreed – in principle – that something must be done about financial firms that are “too big to fail.” But a recent report released by the Financial Stability Board underscores how little progress has been made.
WASHINGTON, DC – At least since the fall of 2008, leading economies’ officials have agreed – in principle – that something must be done about financial firms that are “too big to fail.” Great efforts, including countless international meetings, working papers, and communiqués have been devoted to this end. Earlier this month, the Basel-based Financial Stability Board (FSB) announced, to some fanfare, the completion of a major stage in this project. But the announcement only served to underscore how little progress has been made. The world’s largest banks remain too big to fail, and this is likely to have dire consequences in the near future.
WASHINGTON, DC – At least since the fall of 2008, leading economies’ officials have agreed – in principle – that something must be done about financial firms that are “too big to fail.” Great efforts, including countless international meetings, working papers, and communiqués have been devoted to this end. Earlier this month, the Basel-based Financial Stability Board (FSB) announced, to some fanfare, the completion of a major stage in this project. But the announcement only served to underscore how little progress has been made. The world’s largest banks remain too big to fail, and this is likely to have dire consequences in the near future.