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Ben Bernanke's Blog: Ending "too big to fail": What's the right approach?

Brookings

Ben S. Bernanke | May 13, 2016 10:00am

In a recent speech at the Hutchins Center at the Brookings Institution, Neel Kashkari, the new president of the Federal Reserve Bank of Minneapolis, argued that we need new strategies to tackle the problem of “too big to fail” (TBTF) financial institutions. On Monday, I’ll be on a panel at the Minneapolis Fed on the issue. This post previews my comments. In short, it seems to me that a lot of progress has been made (and more is in train) toward reducing the risks that large, complex financial institutions pose for the financial system and the economy. To say that “nothing has been done” is simply not correct. That said, because it’s really important to get this right, thoughtful debate on the issue is necessary and welcome.

Ben S. Bernanke is a Distinguished Fellow in Residence with the Economic Studies Program at the Brookings Institution and also serves as a Senior Advisor to PIMCO and Citadel. From February 2006 through January 2014, he was Chairman of the Board of Governors of the Federal Reserve System. He is also the author of The Courage to Act. Dr. Bernanke also served as Chairman of the Federal Open Market Committee, the System's principal monetary policymaking body.