Wednesday, 14 December 2011

The Drawing Board :: Three Tier Proposal

The Drawing Board :: Three Tier Proposal


The term systemically important financial institution is all over the news these days. It refers to financial institutions that are so big, or interconnected, or unique that they pose a risk of taking down the entire financial system should they fail. A researcher at the Federal Reserve Bank of Cleveland is proposing a three-tiered system for regulating systemically important financial institutions. This video helps explain the proposal for those who aren't policy wonks.

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