Too Big to Fix? Like the Stay Puft Marshmallow Man, the world’s largest banks are tough to wrangle, according to financial regulation expert Mayra Rodríguez Valladares. She argues that while it’s too early to know the efficacy of all the regulations aimed at ending “too big to fail,” there’s clearly reason to worry about big banks’ operational risk and the validity of their living wills. The post is the latest in a continuing debate over TBTF on BankThink. Those in need of a refresher can check out an op-ed by Boston University professor of banking law Cornelius Hurley and a response from The Clearing House Association president Paul Saltzman. Separately, Valladaresmakes the case for H.R. 888, a bill that would require banks to accumulate capital equal to the amount of market subsidy they receive.
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