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It is worth noting that 'too big to fail' is not simply about size. A big institution is 'too big' when there is an expectation that government will do whatever it takes to rescue that institution from failure, thus bestowing an effective risk premium subsidy. Reforms to end 'too big to fail' must address the causes of this expectation.
— Jerome Powell
Tags: end, will, government, failure

Other Quotes by "Jerome Powell"

My own experience is that the best outcomes are reached when opposing viewpoints are clearly and strongly presented before decisions are made.
— Jerome Powell
Tags: own, my-own, experience, best
Loss-absorbing capacity among banks is substantially higher as a result of both regulatory requirements and stress testing exercises.
— Jerome Powell
Tags: capacity, testing, result, stress
The Federal Reserve is committed to fulfilling our statutory mandate of stable prices and maximum employment.
— Jerome Powell
Tags: fulfilling, reserve, employment, our
In a world of global trade and integrated capital markets, it is natural for economic and financial shocks and policy actions to be transmitted across borders.
— Jerome Powell
Tags: borders, economic, financial, world
As with so many sectors of the economy, technology is transforming the retail banking sector.
— Jerome Powell
Tags: many, economy, banking, technology
View More by "Jerome Powell"
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