White House To Rein In ‘Too Big To Fail’ Institutions The New York Times reports that the Obama administration is set to bring out new proposals for dealing with “too big to fail” institutions, with increased regulations for preventing failure: “The White House plan as outlined so far would already make it much more costly to be a large financial company whose failure would put the financial system and the economy at risk. It would force such institutions to hold more money in reserve and make it harder for them to borrow too heavily against their assets. Setting up the equivalent of living wills for corporations, that plan would require that they come up with their own procedure to be disentangled in the event of a crisis, a plan that administration officials say ought to be made public in advance.”
This is a companion discussion topic for the original entry at https://talkingpointsmemo.com/?p=136208