Too big to tolerate? How to right-size America's giant banks
Culture of Competition

Video

 

Event Summary

Do big banks put America at risk of financial failure? At an AEI event on Wednesday, a panel of financial experts scrutinized the idea of too-big-to-fail banks. Thomas Koenig of the Federal Deposit Insurance Corporation argued that the complex, intermingled structure of the US financial system puts the whole framework at risk. He pointed out that government safety nets and bad regulation allow banks to make high-risk decisions that could easily spin out of control.

In an effort to avoid another Great Recession, former senator Ted Kaufman (D-DE) called for separation between commercial and investment banks, recommending a return to the Glass-Steagall Act. He said that the president and Congress must pass simple, effective laws that regulators can use as guidelines to keep banks "in their lanes."

AEI's Peter Wallison raised the issue of uncertainty and how that affects the assessment of regulators. He argued that existing data does not confirm that the size of the bank accounts for any instability in the markets. Consequently, he concluded that Congress should support competition by allowing banks to go bankrupt instead of bailing them out.
--Brittany French

Event Description

Big banks were once regarded as the creatures of unfettered capitalism. But after Washington bailed the big guys out, and after a string of studies suggesting that those banks are really the creatures of implicit bailouts, even the most laissez-faire individuals need to ask whether the big banks are too big.

Do big banks create instability, increase the likelihood of bailouts, and increase demand for regulations? Would they be so big without government support? And, finally, if they are too big, what should be done?

Please join us for a discussion of the genesis and consequences of America’s largest banks, and solutions for returning them to market-oriented fundamentals.

If you are unable to attend, we welcome you to watch the event live on this page. Full video will be posted within 24 hours.

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Peter J.
Wallison

 

Timothy P.
Carney

What's new on AEI

Love people, not pleasure
image Oval Office lacks resolve on Ukraine
image Middle East Morass: A public opinion rundown of Iraq, Iran, and more
image Verizon's Inspire Her Mind ad and the facts they didn't tell you
AEI on Facebook
Events Calendar
  • 21
    MON
  • 22
    TUE
  • 23
    WED
  • 24
    THU
  • 25
    FRI
Monday, July 21, 2014 | 9:15 a.m. – 11:30 a.m.
Closing the gaps in health outcomes: Alternative paths forward

Please join us for a broader exploration of targeted interventions that provide real promise for reducing health disparities, limiting or delaying the onset of chronic health conditions, and improving the performance of the US health care system.

Monday, July 21, 2014 | 4:00 p.m. – 5:30 p.m.
Comprehending comprehensive universities

Join us for a panel discussion that seeks to comprehend the comprehensives and to determine the role these schools play in the nation’s college completion agenda.

Tuesday, July 22, 2014 | 8:50 a.m. – 12:00 p.m.
Who governs the Internet? A conversation on securing the multistakeholder process

Please join AEI’s Center for Internet, Communications, and Technology Policy for a conference to address key steps we can take, as members of the global community, to maintain a free Internet.

Event Registration is Closed
Thursday, July 24, 2014 | 9:00 a.m. – 10:00 a.m.
Expanding opportunity in America: A conversation with House Budget Committee Chairman Paul Ryan

Please join us as House Budget Committee Chairman Paul Ryan (R-WI) unveils a new set of policy reforms aimed at reducing poverty and increasing upward mobility throughout America.

Thursday, July 24, 2014 | 6:00 p.m. – 7:15 p.m.
Is it time to end the Export-Import Bank?

We welcome you to join us at AEI as POLITICO’s Ben White moderates a lively debate between Tim Carney, one of the bank’s fiercest critics, and Tony Fratto, one of the agency’s staunchest defenders.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.