The potential failure of a large bank presents vexing questions for policymakers. It poses significant risks to other financial institutions, to the financial system as a whole, and possibly to the economic and social order. Because of such fears, policymakers in many countries - developed and less developed, democratic and autocratic - respond by protecting bank creditors from all or some of the losses they otherwise would face. Failing banks are labeled 'too big to fail' (or TBTF). This important new book examines the issues surrounding TBTF, explaining why it is a problem and discussing ways of dealing with it more effectively. Gary Stern and Ron Feldman, officers with the Federal Reserve, warn that not enough has been done to reduce creditors' expectations of TBTF protection. Many of the existing pledges and policies meant to convince creditors that they will bear market losses when large banks fail are not credible, resulting in significant net costs to the economy. The authors recommend that policymakers enact a series of reforms to reduce expectations of bailouts when large banks fail.

加裏•斯特恩

★經濟學傢、銀行傢，曾任美聯儲下屬明尼阿波利斯聯邦儲備銀行行長。

★斯特恩是美國國傢經濟教育理事會的董事會主席。

★在擔任明尼阿波利斯聯邦儲備銀行行長之前，他曾任職於哥倫比亞大學、華盛頓大學和紐約大學。

羅恩•費爾德曼

★經濟學傢、銀行傢，美國明尼阿波利斯聯邦儲備銀行高級副總裁。