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Too big to fail: the transatlantic debate

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  • Nicolas Véron
  • Morris Goldstein

Abstract

Although the United States and the European Union were bothseriously impacted by the financial crisis of 2007, the resulting policy debates and regulatory responses have differed considerably on the two sides of the Atlantic. This paper by Nicolas Véron and Morris Goldstein examines the debates on the problem posed by "too big to fail" financial institutions. The authors then turn to possible remedies and how they may be differentially implemented in America and Europe. They conclude on the policy developments that are likely in the near future.

Suggested Citation

  • Nicolas Véron & Morris Goldstein, 2011. "Too big to fail: the transatlantic debate," Working Papers 495, Bruegel.
  • Handle: RePEc:bre:wpaper:495
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Giuseppe Mastromatteo & Giuseppe Mastromatteo, 2016. "Minsky at Basel: A Global Cap to Build an Effective Postcrisis Banking Supervision Framework," Economics Working Paper Archive wp_875, Levy Economics Institute.
    2. Bertay, Ata Can & Demirgüç-Kunt, Asli & Huizinga, Harry, 2013. "Do we need big banks? Evidence on performance, strategy and market discipline," Journal of Financial Intermediation, Elsevier, vol. 22(4), pages 532-558.
    3. Rachel A. Epstein, 2014. "Assets or liabilities? The politics of bank ownership," Review of International Political Economy, Taylor & Francis Journals, vol. 21(4), pages 765-789, August.
    4. Guillaume Arnould & Salim Dehmej, 2016. "Is the European banking system robust? An evaluation through the lens of the ECB?s Comprehensive Assessment," International Economics, CEPII research center, issue 147, pages 126-144.
    5. Rachel A. Epstein & Martin Rhodes, 2014. "Banking Nationalism on the Road to Banking Union," KFG Working Papers p0061, Free University Berlin.
    6. Fariborz Moshirian, 2014. "Implications of global financial and regulatory policies on systemic risk in Asia," Chapters,in: Global Shock, Risks, and Asian Financial Reform, chapter 8, pages 284-332 Edward Elgar Publishing.
    7. Zlatuse Komarkova & Vaclav Hausenblas & Jan Frait, 2012. "How To Identify Systemically Important Financial Institutions," Occasional Publications - Chapters in Edited Volumes,in: CNB Financial Stability Report 2011/2012, chapter 0, pages 100-111 Czech National Bank, Research Department.
    8. Dijkman,Miquel, 2015. "Monitoring financial stability in developing and emerging economies : practical guidance for conducting macroprudential analysis," Policy Research Working Paper Series 7248, The World Bank.
    9. Ceyla Pazarbasioglu & Luc Laeven & Oana M Croitoru & Stijn Claessens & Fabian Valencia & Marc Dobler & Katharine Seal, 2011. "Crisis Management and Resolution; Early Lessons from the Financial Crisis," IMF Staff Discussion Notes 11/05, International Monetary Fund.
    10. Teh Tian Huey & Daniel Chin Shen Li, 2017. "Measuring bank risk-taking behaviour: the risk-taking channel of monetary policy in Malaysia," IFC Bulletins chapters,in: Bank for International Settlements (ed.), Statistical implications of the new financial landscape, volume 43 Bank for International Settlements.

    More about this item

    JEL classification:

    • G01 - Financial Economics - - General - - - Financial Crises
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration

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