The Administration's approach to ending Too Big To Fail includes stronger, more comprehensive regulation, higher capital requirements, new resolution authority to allow failing firms to fail, and restrictions on the size and scope of financial institutions.
The government's recent stimulus measures give failing firms taxpayers' money.
But how – and this is far trickier – do you identify failing firms before they do?
Media coverage of failing firms and layoffs contributed to mounting uncertainty and fear.
Without good investment opportunities available (given economic conditions) these loans merely propped up failing firms.
Earlier this year, Spain adopted new rules making it less hard to restructure failing firms.
It would create a structure so the government could break down failing firms in an orderly manner.
The debt-strapped government can no longer afford to bail out failing firms, even if that means jobs are lost.
On that occasion, many banks foreclosed early on failing firms and sold off their assets as quickly as possible.
If losses begin to mount, and failing firms return for more help, it might even prove unpopular with voters too.
And he defended the inclusion in the bill of a $50 billion fund to help shut down failing firms.
