Perception Of Too Big To Fail Remains: NY Fed Researchers
Managing perception is an important part of securing the financial sector. If people don’t believe their deposits are safe they will run on the banks (as we’ve seen recently in Greece), but if investors believe large banks are too big to fail they will happily fund unreasonable risks. So even though post-crisis has increased bank capital and liquidity and made plans for winding down the largest bank holding companies (BHC), it can’t be called a complete success unless the market believes that the era of . . .
This content is exclusively for paying members.
If you are subscribed and having an account error please clear cache and cookies if that does not work email [email protected] or click Chat.