As well intended as it could be, the regulator seems to ignore that none of the European insurance companies needed any rescue during the financial crisis and they even contributed to the haircut of Greek debt.
When Americans realize that the alternative is to have their ready cash transformed into "bank stock" of questionable marketability, moving failed mega-banks into the public sector may start to have more appeal.
We need look no further than the example of Lehman Brothers to understand how one financial institution's failure can threaten the global financial system and create devastating effects to economies around the world.
Though pressure is building from the financial industry to slow reform efforts -- and concerns about fiscal conditions risk drawing public and political energies away from the need to act -- we must seize this moment and implement broad financial reform soon.
If a Wall Street bank begins to fail, threatening the safety of the financial system, it will be put to death. End of story. Republicans -- the ones who bailed out Wall Street -- just don't want to believe it.
The recent crisis was a failure of risk management -- a diagnosis widely shared among the members of the IIF. But we are also starting the next crisis: the public finance crisis in Europe, the United States and Japan.
The real issue for regulators around the globe is a serious definition of the financial world we want to live in. The current focus nearly exclusively on the banking sector could cause authorities to miss the broader picture.