Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law, proposes a 3-step plan to deal with “To-Big-To-Fail” firms seeking bailout bucks. (1) Identify them publicly; (2) regulate them intensely; and (3) levy a charge on them equal to the cost-of-funds advantage they derive from being designated TBTF.
“TBTF firms will always be with us and, for this reason, the symbiotic relationship between them and the financial system needs to be recognized. Among other things, taking these steps will retard the pursuit of gigantism that has characterized the last three decades of free-market exuberance.”
Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu
