Too big to fail (TBTF)
Herding tendencies mean smaller banks won't solve moral hazard issue
Anticipation of bailouts encourages banks to invest alike, making bailouts more probable and crises more severe, Minneapolis Fed paper argues
BoE exec calls for enough GLAC to restore capital level above minimum
Banks that have undergone resolution ‘likely to need at least as much capital as other banks in the market' to command market confidence
Risk of dealers exiting from market-making 'much reduced', says BoE's Cunliffe
Bank of England deputy governor for financial stability says prospective UK leverage ratio framework 'could include power to vary ratio to counter macro-prudential risks'
Tarullo addresses Dodd-Frank's impact on mid-sized banks
The Fed governor notes these lenders 'vary enormously in size' and bridge current $50bn bar for enhanced prudential supervision; suggests 'line might be better drawn' at $100bn
Yellen promises ‘tailored' regulation for community lenders
Fed chair says regulator will become ‘smarter' in applying rules to ensure smaller lenders can thrive, while still addressing ‘too big to fail'
Czechs discuss appropriate capital requirements for Sifis
Paper sets out the range of indicators that could be used, and the advantages and disadvantages of focusing on an individual or consolidated level
Too big to fail subsidy was worth up to $300bn in eurozone in 2012, IMF says
A report in this year's Global Financial Stability Review says that while excluding the possibility of government support may not be possible, ways should be found of making banks pay for it
ECB paper finds US resolution authority has not solved too-big-to-fail problem
Research uses creation of US Orderly Liquidation Authority as ‘quasi-natural experiment’, finding many banks are disciplined but the largest still do not believe the threat to be credible
NY Fed releases new research on large and complex banks
Special edition of the Economic Policy Review aims to further study and debate, and help inform policy-makers on issues around too-big-to-fail
Downturn could halve capital ratios of biggest US banks, Fed stress tests show
Bank of America, Goldman Sachs, JP Morgan, Citigroup and Morgan Stanley all perform below average in Fed stress tests
BoE praises implementation of new loss-allocation rules for clearing members
Bank's first annual report on supervision of financial market infrastructure since assuming oversight responsibilities for central counterparties last April
Bail-in rules the 'bedrock' of European banking union, says BoE's Cunliffe
Head of the UK's Prudential Regulation Authority also cautions that despite far-reaching reform efforts, regulators would struggle to resolve 'a failing global giant'
Bernanke passes torch to Yellen as poll shows US torn on his legacy
Janet Yellen to be sworn in as Federal Reserve chair on Monday, but de facto takes over when Bernanke bids farewell today
Dombret questions benefit of breaking up banks
Doubts that separation between investment and commercial banking would ensure that lenders can fail 'without disrupting the system'; says 'pure commercial banks' were at centre of crisis
FDIC's Hoenig says government backstops remain 'generous subsidy' for big banks
The competitive inequities that result from too big to fail remain mostly unaddressed, Hoenig says; calls for separation between commercial banks and broker-dealers
Fed presidents push for macro-prudential rethink
Eric Rosengren joins chorus for simpler Basel III capital requirements, while Narayana Kocherlakota says regulators ought to be paying more attention to the measurement of too-big-to-fail effects
OECD’s William White fears global economic system is still highly unstable
William White tells Christopher Jeffery he is wary of placing too much reliance on the ‘science’ of monetary or regulatory policy. He also believes the world economic system is still out of balance
Moody's says big US banks no longer ‘too big to fail'
Agency cuts ratings of four systemically important US banks, including Goldman Sachs and JP Morgan, as Dodd-Frank believed to reduce prospects of future government bailouts
NY Fed's Dudley says Sifis must build firmer foundations
Reducing the chances of a systemically important financial institution (Sifi) failing - and bringing the system down with it - is key to overcoming 'too big to fail', says Bill Dudley
Fed heavyweights warn new bank resolution laws won't end ‘too big to fail'
Dudley, Lacker and Tarullo say 'single point of entry' framework under 'Title II' provision is important but inadequate; FOMC members call for long-term debt requirement for Sifis
UBS and Credit Suisse still pose risks to financial stability, SNB vice-chair says
Jean-Pierre Danthine argues Basel III is inadequate and does not rule out possibility of future public bail-outs; warns Switzerland's biggest banks still 'very large by international standards'
FDIC chair says Dodd-Frank means US regulators can manage failing Sifis
Martin Gruenberg argues Dodd-Frank Act's Title I and II provisions give ‘significant new authorities' to the FDIC to ‘plan for and manage the orderly failure of a Sifi'
BoE’s Tucker says big US banks will now be allowed to fail
Paul Tucker says authorities have enough resolution 'technology' in place to resolve almost all systemically important US banks, but more work needs to be done to make the process smoother