Definitions for too big to fail
too big to fail

WiktionaryRate this definition:0.0 / 0 votes

1. too big to failadjective

   Pertaining to an enterprise deemed too important to the economy or polity to be allowed to fail, that is to be liquidated or to go bankrupt.

WikipediaRate this definition:0.0 / 0 votes

1. Too big to fail

   "Too big to fail" (TBTF) and "too big to jail" is a theory in banking and finance that asserts that certain corporations, particularly financial institutions, are so large and so interconnected that their failure would be disastrous to the greater economic system, and that they therefore must be supported by governments when they face potential failure. The colloquial term "too big to fail" was popularized by U.S. Congressman Stewart McKinney in a 1984 Congressional hearing, discussing the Federal Deposit Insurance Corporation's intervention with Continental Illinois. The term had previously been used occasionally in the press, and similar thinking had motivated earlier bank bailouts.The term emerged as prominent in public discourse following the global financial crisis of 2007–2008. Critics see the policy as counterproductive and that large banks or other institutions should be left to fail if their risk management is not effective. Some critics, such as economist Alan Greenspan, believe that such large organisations should be deliberately broken up: "If they're too big to fail, they're too big." Some economists such as Paul Krugman hold that financial crises arise principally from banks being under-regulated rather than their size, using the widespread collapse of small banks in the Great Depression to illustrate this argument.In 2014, the International Monetary Fund and others said the problem still had not been dealt with. While the individual components of the new regulation for systemically important banks (additional capital requirements, enhanced supervision and resolution regimes) likely reduced the prevalence of TBTF, the fact that there is a definite list of systemically important banks considered TBTF has a partly offsetting impact.

How to pronounce too big to fail?

1. Alex

   US English

   David

   US English

   Mark

   US English

   Daniel

   British

   Libby

   British

   Mia

   British

   Karen

   Australian

   Hayley

   Australian

   Natasha

   Australian

   Veena

   Indian

   Priya

   Indian

   Neerja

   Indian

   Zira

   US English

   Oliver

   British

   Wendy

   British

   Fred

   US English

   Tessa

   South African

How to say too big to fail in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of too big to fail in Chaldean Numerology is: 3

2. Pythagorean Numerology

   The numerical value of too big to fail in Pythagorean Numerology is: 5

Examples of too big to fail in a Sentence

1. Ron DeSantis:

   You know, the Dodd-Frank piece I think would be very good for the economy, moving away from too big to fail and really lifting the burden off a lot of our small and medium-sized financial institutions who have just gotten clubbed by Dodd-Frank.

2. Adam Green:

   It's fair for voters to be skeptical of Hillary Clinton's speeches about holding Wall Street accountable when Wall Street institutions fund her foundation at the same time she gives those speeches, that's a burden that Clinton will have to address by backing up her words with bold action -- like appointing an economic team not beholden to Wall Street and showing a willingness to break up too-big-to-fail banks and jail bankers who broke the law.

3. Federal Reserve:

   By making the failure of even the largest banks more manageable, the proposed regulation will be another important step in solving the too-big-to-fail problem.

4. Bernie Sanders:

   I believe we should break up the Wall Street banks. If they're too big to fail, they're too big to exist.

5. Chris Ferreri:

   One of the key objectives of post-crisis regulation was to reduce the risk of banks that were 'too big to fail', but the unintended consequence has produced quite the opposite. We have actually seen an increase in risk concentration among the top firms, the dealer community as a whole is struggling with this transition and we believe OpenDoor has created a model where we can serve clients as both principal and agent which helps to re-liquify the off-the-run market and preserve those deep and valuable relationships.

References

1. ^ Wiktionary
   https://en.wiktionary.org/wiki/Too_Big_to_Fail
2. ^ Wikipedia
   https://en.wikipedia.org/wiki/Too_Big_to_Fail