The return of 'too big to fail'

"The politics of financial regulation are certainly getting weirder and more interesting"

Is this way of thinking irresponsible?
(Image credit: Laughing Stock/Corbis)

The smartest insight and analysis, from all perspectives, rounded up from around the web:

It was the last thing Wall Street expected from a Republican who used to work for Goldman Sachs, said Zachary Warmbrodt at Politico. In a speech last week, the new president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, "blindsided" the financial establishment by suggesting that the biggest banks in America "are still too big to fail." These institutions "continue to pose a significant, ongoing risk to our economy," Kashkari said, despite a slew of regulations enacted since the financial crisis to prevent the next meltdown. Warning that the biggest banks are still "so entrenched in the economy" that Washington would have no choice but to come to the rescue if one of them failed, Kashkari said the government should consider breaking these banks up, or treating them like public utilities. As the former Bush administration official who oversaw the 2008 bailout effort known as the Troubled Asset Relief Program (TARP), Kashkari should know.

Subscribe to The Week

Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

SUBSCRIBE & SAVE
https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg

Sign up for The Week's Free Newsletters

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.

Sign up
To continue reading this article...
Continue reading this article and get limited website access each month.
Get unlimited website access, exclusive newsletters plus much more.
Cancel or pause at any time.
Already a subscriber to The Week?
Not sure which email you used for your subscription? Contact us