A Quote by Jeremy C. Stein

Perhaps more to the point for TBTF (Too Big To Fail bank), if a SIFI (Systemically Important Financial Institution) does fail I have little doubt that private investors will in fact bear the losses-even if this leads to an outcome that is messier and more costly to society than we would ideally like. Dodd-Frank is very clear in saying that the Federal Reserve and other regulators cannot use their emergency authorities to bail out an individual failing institution

Jeremy C. Stein

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Authorities Bail Bank Bear Big Cannot Clear Costly Dodd-Frank Does Doubt Emergency Even Fact Fail Failing Federal Federal Reserve Financial Frank Ideally Important In Fact Individual Institution Investors Leads Like Little Losses More Other Out Outcome Perhaps Point Private Regulators Reserve Saying Society Than Too Use Very Will Would

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Jeremy C. Stein
Born: 1960

It is worth noting that 'too big to fail' is not simply about size. A big institution is 'too big' when there is an expectation that government will do whatever it takes to rescue that institution from failure, thus bestowing an effective risk premium subsidy. Reforms to end 'too big to fail' must address the causes of this expectation.

Jerome Powell

We support too big to fail. We want the government to be able to take down a big bank like JP Morgan and it could be done. We think Dodd-Frank, which we supported parts of, gave the FDIC the authority to take down a big bank.

Jamie Dimon

Fannie Mae and Freddie Mac - two bloated and corrupt government-sponsored programs - contributed heavily to the crisis.In order to prevent another crisis, we need to do what we should have done years ago - reform Fannie Mae and Freddie Mac. We also need to repeal Dodd-Frank, the Democrats' failed solution. Under Dodd-Frank, 10 banks too big to fail have become five banks too big to fail. Thousands of community banks have gone out of business.

Carly Fiorina

But the instinct of hoarding, like all other instincts, tends to become hypertrophied and perverted; and with the institution of private property comes another institution-that of plunder and brigandage. In private life, no motive of action is at present so powerful and so persistent as acquisitiveness, which unlike most other desires, knows no satiety. The average man is rich enough when he has a little more than he has got, and not till then.

William Ralph Inge

If a financial institution is too big to fail, it is too big to exist.

Bernie Sanders

There are a number of institutions globally where the Federal Reserve typically leads the U.S. effort to work with financial regulators from other countries, and we try to, to the extent possible, establish international standards for how - the amount of capital a bank should hold, for example, or how much.

Ben Bernanke

Dodd-Frank greatly expanded the regulatory reach of the Federal Reserve. It did not, however, examine whether it was correctly structured to account for these new and expansive powers. Therefore, the Committee will be examining the appropriateness of the Fed's current structure in a post Dodd-Frank world.

Richard Shelby

We have a huge institution that celebrates the undistinguished, an institution which is nearly as old as the Papists. It's been going on for millennia. What else is a monarchy but a series of ridiculously exalted figures who are not necessarily distinguished at all? In fact, they have a rather philistine tradition. So perhaps we are more vulnerable to it than other countries.

Martin Amis

Look at any financial institution, at any bank. They're all photocopies of each other. There's no diversity of institutions and even less diversity of currency. Therefore, just as you say its very logical that an ecosystem like this will collapse, it's very predictable a monetary system like this will collapse, too. And it hasn't finished collapsing, by the way.

Bernard Lietaer

RE: GSEs like Freddie Mac & Fannie Mae: "creditors will continue to underprice the risk-taking of these financial institutions, overfund them, and fail to provide effective market discipline Facing prices that are too low, systemically important firms will take on too much risk."

Gary H. Stern

So: if the chronic inflation undergone by Americans, and in almost every other country, is caused by the continuing creation of new money, and if in each country its governmental "Central Bank" (in the United States, the Federal Reserve) is the sole monopoly source and creator of all money, who then is responsible for the blight of inflation? Who except the very institution that is solely empowered to create money, that is, the Fed (and the Bank of England, and the Bank of Italy, and other central banks) itself?

Murray Rothbard

No single housing finance institution should be too big to fail.

Jerome Powell

If you're not producing as much as you consume, or perhaps a little more, then clearly we cannot use the big organization of our society for the purpose of keeping you alive, because your life does not benefit us, and it can't be of very much use to yourself.

George Bernard Shaw

To have something which one particularly wants to do is more important than anything else. It is even more important than succeeding in that thing you want to do. In fact it does not matter if you fail, but it does matter that you do or do not want to do something.

Glenda Jackson

Apparently modern financial regulators are vastly more sophisticated than we were as financial regulators 25 years ago - because we had never figured out that the key to financial stability was leaving felons in charge of the largest financial institutions in the world.

William K. Black

A financial institution has the task of taking risks, and if it's a well run institution - say, Goldman Sachs - it tries to cover the potential losses to itself, but only to itself.

Noam Chomsky

A Quote by Jeremy C. Stein

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