U.K., U.S. offer joint plan for "too big to fail" banks

U.S. and U.K. regulators have made public their common view of how to cope with financial institutions considered "too big to fail." The Federal Deposit Insurance Corp. and the Bank of England discussed the problem in a joint paper. "We believe that, for many [global systemically important financial institutions], this strategy holds the best possibility of preserving stability while removing taxpayer support," Martin Gruenberg, chairman of the FDIC, and Paul Tucker of the Bank of England wrote in the Financial Times. "It holds shareholders, creditors and management in a failed GSifi accountable for its losses."

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