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Too big to fail - Wikipedia

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"Too big to fail" (TBTF) is a theory in banking and finance that asserts that certain corporations, particularly financial institutions, are so large and so interconnected that their failure would be disastrous to the greater economic system, and therefore should be supported by government when they face potential failure.[1] The colloquial term "too big to fail" was popularized by U.S. Congressman Stewart McKinney in a 1984 Congressional hearing, discussing the Federal Deposit Insurance Corporation's intervention with Continental Illinois.[2] The term had previously been used occasionally in the press,[3] and similar thinking had motivated earlier bank bailouts.[4] The term emerged as prominent in public discourse following the global financial crisis of 2007–2008.[5][6] Critics see the policy as counterproductive and that large banks or other institutions should be left to fail if their risk management is not effective.[7][8] Some critics, such as economist Alan Greenspan, believe th

Too big to fail - Wikipedia Jump to content From Wikipedia, the free encyclopedia Theory in banking and finance This article is about a theory in economics. For the legal designation, see Systemically important financial institution . For the book, see Too Big to Fail (book) . For the film, see Too Big to Fail (film) . Part of a series on financial services Financial regulation Types of regulations Money laundering Capital requirements Bank regulations Basel Accords International Financial Reporting Standards Fund governance Reserve requirement Concepts Accounting scandal Bank run Know your cu

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