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Systemically Important Firms

Is the "Too Big to Fail" Problem Too Big to Solve?

Jack M. Guttentag | Posted 11.11.2014 | Business
Jack M. Guttentag

The major objection to bailouts is less that the firms affected don't deserve it but that public funds are used for the purpose. If we had a way to require SI firms as a group to pay the cost of bail-outs, the too-big-to-fail problem becomes manageable.