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The financial crisis is forcing regulators to encourage the creation of bigger, more interconnected institutions.
The Pierre Boulez Saal is now part of a veritable campus of interconnected institutions that bear Mr. Barenboim's imprint.
Huge and interconnected institutions like Citigroup and A.I.G. have received billions in government aid to keep their troubles from pulling down other companies.
Because they was bored?" She talks about the interconnected institutions that might share this mentality – the hospitals, the fire stations, the courts and local government – and how that might filter down to create a climate of unthinking prejudice.
She expressed sympathy for the idea of a council of regulators "with the power to evaluate risk across the financial sector," and added, "large, interconnected institutions should be supervised on a consolidated basis".
However, the Basel rules could wind up being similar to the Swiss rules as they apply to big or highly interconnected institutions, whose failure would threaten the financial system or the economy.
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Moody's says it expects those banks seen as "systemically important" to keep their ratings "until the economic recovery is sustained, financial market health is restored, and the risks of attempting to unwind an interconnected institution are reduced".
The regulation of large interconnected financial institutions has become a key policy issue.
The Dodd proposal would give the Fed oversight over the largest and most interconnected financial institutions, a provision that has raised alarm among some Republicans.
It carries the implication that really large, complex and highly interconnected financial institutions can count on public support at critical times.
That legislation would create an interagency council to look out for systemic financial risks and give the Federal Reserve responsibility for overseeing the largest and most interconnected financial institutions.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com