Symposium on Ending Too Big to Fail

The Peterson Institute for International Economics and the Federal Reserve Bank of Minneapolis held the third symposium on "Ending Too Big to Fail" at PIIE on June 20, 2016. The symposium series is a major initiative launched by the Minneapolis Fed to assess the current status and outlook for addressing the problems of too big to fail (TBTF) banks. This third gathering in the series, and the first joint with the Institute, specifically examined the cost-benefit analysis of increasing bank capital and evaluated more broadly the status of ending TBTF.

The opening panel reviewed the framework currently used to evaluate proposals increasing capital requirements to address TBTF. Ron J. Feldman, Federal Reserve Bank of Minneapolis’s executive vice president and senior policy advisor, moderated a discussion with panelists William R. Cline, PIIE senior fellow; Giovanni Dell'Ariccia, deputy director of the International Monetary Fund's Research Department; and Douglas Elliott, a partner in finance and risk and public policy practices at Oliver Wyman.

The afternoon panel took a broader look at what current policy towards banks leaves unaddressed or problematic. Minneapolis Fed President Neel Kashkari opened with remarks on the status of ending TBTF. Bertrand Badré, formerly Group Chief Financial Officer at Société Générale and Crédit Agricole, provided a private sector perspective. PIIE President Adam S. Posen assessed the global TBTF regime and international regulatory efforts.