Today, the Federal Reserve Bank of Minneapolis launched an initiative to develop a plan to end Too Big to Fail (TBTF) and is now seeking public input to help identify solutions.
Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, delivered a speech at the Brookings Institution in Washington, D.C., today establishing a process to protect the U.S. economy by ending TBTF. Kashkari recalled the measures implemented to stem widespread economic collapse and stabilize the economy.
Now, more than five years after the Dodd-Frank Act, Kashkari maintains that financial reform has not gone far enough. In particular, the biggest banks are still too big to fail and continue to pose a significant and ongoing risk to the U.S. economy.
The economists and policy experts at the Federal Reserve Bank of Minneapolis have an established history of research into the issue of TBTF. Well before the Great Recession of 2008, former Bank President Gary Stern and current Executive Vice President and Senior Policy Adviser Ron Feldman were among the first to publish about the hazards of bank bailouts.
Anyone interested in learning more or submitting ideas about ending TBTF may do so at minneapolisfed.org/endingTBTF. Follow the Minneapolis Fed and the conversation on Twitter by searching @minneapolisfed and #EndingTBTF.
The Federal Reserve Bank of Minneapolis is one of 12 regional Reserve Banks that, with the Board of Governors in Washington, D.C., make up the Federal Reserve System, the nation’s central bank. The Federal Reserve Bank of Minneapolis is responsible for the Ninth Federal Reserve District, which includes Montana, North and South Dakota, Minnesota, northwestern Wisconsin and the Upper Peninsula of Michigan. The Federal Reserve Bank of Minneapolis participates in setting national monetary policy, supervises numerous banking organizations, and provides a variety of payments services to financial institutions and the U.S. government.