Views on improving the integrity of global capital markets
25 May 2011

Still Too Big to Fail?

Posted In: Uncategorized

HBO recently broadcast “Too Big to Fail,” the film adaptation of New York Times writer Andrew Ross Sorkin’s book of the same name. It’s a gripping recount of the 2008 meltdown — from the collapse of Bear Stearns and the Lehman bankruptcy that sparked a global crisis, to the government bailout of insurance giant AIG teetering on the brink of collapse and, finally, the largest banks reluctantly accepting TARP money.

The movie ultimately ends where it began — with enormous power and influence concentrated among only a handful of deeply interconnected banks. Proof that truth is often stranger than fiction.

Nearly three years later, the bailout debate continues. The New York Times reports that, during a recent high-profile panel discussion on whether Dodd-Frank ends “too big to fail,” some participants expressed skepticism  — including a former Treasury Department official who helped oversee the  AIG bailout and participated in the policy planning process that ultimately led to the Dodd-Frank Act.

Developing a policy framework to reduce systemic risk and close gaps in regulatory enforcement is an urgent challenge. Unfortunately, little progress has been made in the post-Dodd-Frank world, as we’ve reported here.

So much for a Hollywood ending.

About the Author(s)
Crystal Detamore

Crystal Detamore is a communications director at CFA Institute and a former columnist for Entrepreneur magazine.

Leave a Reply

Your email address will not be published. Required fields are marked *



By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close