It is worth noting that 'too big to fail' is not simply about size. A big institution is 'too big' when there is an EXPECTATION that GOVERNMENT will do whatever it takes to RESCUE that institution from failure, thus bestowing an effective risk premium subsidy. Reforms to end 'too big to fail' MUST ADDRESS the causes of this expectation.

Author - Jerome Powell


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Posted on 20 Feb 2025, this text provides information on Reforms related to Jerome Powell. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

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