As public outrage grows over the distribution of bonuses to employees at private firms being bailed out by the government, many are asking questions about the inevitability of some financial firms being “too big to fail” and the consequences of propping up firms at any cost.
On March 31, the Initiative on Business and Public Policy at Brookings hosted a public event with Minneapolis Federal Reserve President Gary H. Stern and Vice President Ron J. Feldman, authors of the book Too Big to Fail: The Hazards of Bank Bailouts (Brookings Institution Press, revised paperback, 2009). Brookings Senior Fellow Martin Baily, who directs the Business Initiative, moderated a panel discussion following the authors’ remarks. The panel included former Federal Reserve Chairman Alan Greenspan.
After the program, speakers took audience questions.
The Bankers Who Warned About ‘Too Big To Fail’