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On top of these systems will sit many specialised and interconnected firms, just like applications on a computing platform.
If there is no proven way to reduce the systemic risk in big and interconnected firms, why should they be allowed to exist?
In Tuscany, business life revolved around small, interconnected firms, just as it did in Wenzhou, a city so resolutely entrepreneurial that it had resisted Mao's collectivization campaign.
There was a system-wide oversight council created, composed of representatives from various financial regulators, but the council will only be overseeing the largest and most interconnected firms.
If not, regulatory reform efforts of individual nations will be hobbled because nearly every pressing matter — cleaning up toxic assets, regulating derivatives, downsizing large and interconnected firms — has an international component.
T. Timothy Ryan, the president of the Securities Industry and Financial Markets Association, said the market crisis exposed that "there was a failure in the statutory framework for the resolution of large, interconnected firms and everyone knows that".
Similar(44)
The administration said it needed that power to rewrite contracts and smoothly unwind a large interconnected firm whose failure could threaten the broader economy.
How else to explain the quixotic decision to let Lehman, a bigger and more interconnected firm than Bear, come crashing down in a single weekend?
Because the government is unwilling to let big, interconnected financial firms fail — and because people at those firms knew it — they engaged in what Mr. Bernanke called "excessive risk-taking".
Because the government is unwilling to let big, interconnected financial firms fail — and because people at those firms knew it — they engaged in what Mr. Bernanke called "excessive risk-taking". To prevent such problems in the future, he called for tougher regulation.
This authority was designed to unwind complex and interconnected financial firms that could threaten the financial system if they failed.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com