A law professor’s perspective on ‘too big to fail’

Roberta S Karmel

Journal of Banking Regulation, 2014, vol. 15, issue 3-4, 227-234

Abstract: During the financial crisis of 2008 the US financial system was saved by government bailouts of the largest banks. Further, these already oversized banking institutions increased in size. The reaction of the US Congress was to pass the Dodd–Frank Act, but this statute has only three provisions that address the possible downsizing of the big banks, and they are insufficient to accomplish the reform required to end ‘too big to fail’. This article recommends that the big banks be broken up pursuant to a specialized mandate based on the techniques used to break up the public utility holding companies after the 1929 stock market crash. Size standards and activity restrictions should be employed as standards in this type of an anti-trust initiative.

Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.palgrave-journals.com/jbr/journal/v15/n3-4/pdf/jbr20147a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/jbr/journal/v15/n3-4/full/jbr20147a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:jbkreg:v:15:y:2014:i:3-4:p:227-234

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/41261/PS2

Access Statistics for this article

Journal of Banking Regulation is currently edited by Dalvinder Singh

More articles in Journal of Banking Regulation from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().