A recap of Federal Reserve’s Richard Fisher comments about ‘too big to fail’ earlier:
- “We need to correct this perversion of American capitalism,” said Mr. Fisher, calling big banks “the spreaders of the crisis” and “shielded from failure.”
- Fisher said that American taxpayers should not be “on the hook” for the riskier activities of banks
- A practical approach to dealing with the “too big to fail” problem may be to incentivize banks to be smaller via stricter capital requirements
- Banks should have to rely a lot more on equity; they should raise more money in the stock market and borrow less
More here at The Wall Street Journal (ungated)
