Ending Too Big to Fail

Federal Reserve Bank of Minneapolis President Neel Kashkari today announced the release of the Minneapolis Plan to End Too Big to Fail (TBTF), a policy solution that will enable the U.S. economy to flourish without exposing it to large risks of financial crises and without requiring taxpayer bailouts.

The Minneapolis Plan to End Too Big To Fail

 

The Minneapolis Plan

Explore the Minneapolis Plan to End Too Big to Fail and read the full plan. [PDF]

 

Presenting the Minneapolis Plan

Read or watch President Kashkari's speech and presentation at the Economic Club of New York on November 16, 2016.

 

Request for Comment

The Minneapolis Plan will be open for a 60-day comment period so that the public can respond to the Plan with comments, suggestions, and feedback.

 

Key Questions about the Minneapolis Plan to End Too Big to Fail

A summary of the Minneapolis Plan for policymakers, featuring a Q&A of commonly asked questions.

 

Watch the President Kashkari's presentation of the Minneapolis Fed’s Plan to End Too Big to Fail

 Hash graphic

We Want Your Help! We Are Seeking Comments on The Minneapolis Plan.

The Federal Reserve Bank of Minneapolis welcomes feedback on all aspects of the Minneapolis Plan.

Symposiums

September 26, 2016

The Fourth Symposium on Ending Too Big to Fail

The fourth symposium examined converting debt to equity as a means to address TBTF and the potential for risk to shift to the shadow banking sector in response to banking regulation and the appropriate regulation of shadow banks. Watch video of the morning session and afternoon session.

Read the summary of the fourth symposium.

June 20, 2016

The Third Symposium on Ending Too Big to Fail

The third symposium examined specifically the cost-benefit analysis of increasing bank capital as well as evaluated more broadly the status of ending TBTF. Watch video of the morning session, afternoon opening remarks, and afternoon session.

Read the summary of the third symposium.

May 16, 2016

The Second Symposium on Ending Too Big to Fail

The second symposium focused on proposals that seek to address the TBTF problem in two ways: taxing leverage in the financial system and enhancements/alternatives to DFA resolution. Presenters included John H. Cochrane of Stanford University and John Bovenzi of the Bipartisan Policy Center.

Watch video of the morning session, lunch keynote, afternoon session and evening public town hall discussion at the University of Minnesota.

Read the summary of the second symposium.

April 4, 2016

“Ending Too Big to Fail” Policy Symposium

This symposium was the first in a series. The event was open to the media and live-streamed for the public. Watch video of the morning session, lunch keynote, afternoon session, and evening public town hall discussion.

Read the summary of the first symposium.

Hash graphic

Stay updated on #EndingTBTF

Our announcement is only the beginning of a process—one in which we hope you will participate! Whether you actively submit an idea to end TBTF or just want to hear about the status of the #EndingTBTF process, please sign up to receive our updates.

Speeches

November 16, 2016

Neel Kashkari Presents the Minneapolis Plan to End Too Big to Fail

Remarks given at the Economic Club of New York in New York, NY.

June 20, 2016

An Update on Ending Too Big to Fail

The third symposium on Ending Too Big to Fail at the Peterson Institute Washington, D.C.

April 18, 2016

Update on Minneapolis Fed Ending Too Big to Fail Initiative

Remarks given at the Minnesota Chamber of Commerce in Minneapolis, MN

February 23, 2016

A conversation with Neel Kashkari at Greater MSP

Video: President Kashkari discusses the #EndingTBTF initiative and answers questions from the audience at Greater MSP's The Way Ahead event in Bloomington

February 16, 2016

President Kashkari Announces Initiative to End Too Big to Fail (TBTF) at the Brookings Institution

On Feb. 16, 2016, Minneapolis Federal Reserve President Neel Kashkari delivered a speech at the Brookings Institution in Washington, D.C., establishing a process to protect the U.S. economy by ending too big to fail (TBTF).

Drawing upon his experience as assistant Treasury secretary and manager of the Troubled Assets Relief Program (TARP) during the Great Recession of 2008, Kashkari recalls the urgent measures that were implemented to stem widespread economic collapse and stabilize the economy. After the immediate fog of crisis, the Dodd-Frank Act of 2010 represented a good effort to address financial reform. Now—more than five years later—it is clear that financial reform did not go 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. Read the full speech

Media Coverage

Recent Media Coverage

Browse recent media coverage on the Minneapolis Fed's initiative on Ending Too Big to Fail.

Hash graphic

The Federal Reserve Bank of Minneapolis: Decades of Depth in TBTF

Well before the Great Recession of 2008, leading economists and policy experts at the Federal Reserve Bank of Minneapolis paved the way in exploring the issue of TBTF. Former Bank President Gary Stern and current Executive Vice President and Senior Policy Adviser Ron Feldman were pioneers in publishing about the hazards of bank bailouts. Since the most recent bailouts of the Great Recession, Stern and Feldman continue to be TBTF thought leaders.

Below, please find a sampling of critical publications authored by scholars from the Minneapolis Fed on this important topic.

Recent Research

January 2016  |  Economic Policy Paper

A Proposal to Eliminate the Distortions Caused by Bailouts

By V. V. Chari & Patrick J. Kehoe
By limiting debt-equity ratios and taxing asset size, policymakers can correct distortions and externalities caused by bailouts.

Key Research

September 2010

Size and Regulatory Reform in Finance: Important but Difficult Questions

In this article Loretta Mester of the Federal Reserve Bank of Philadelphia, Robert DeYoung of the University of Kansas and Ron Feldman present their views on bank economies-of-scale literature and its use in regulatory reform in a Region “symposium.”

May 2008

Managing the Expanded Safety Net

In this essay from 2008, Gary Stern and Ron Feldman explain why the government’s response to the 2007–08 financial turmoil, although justified, expanded the safety net and exacerbated the existing too big to fail (TBTF) problem. A larger TBTF problem is costly, having the capability to sow the seeds of future financial crises, which means we should begin now to develop a new approach to manage TBTF.

Too Big to Fail: The Hazards of Bank Bailouts

The book, published in 2004 by Brookings Institution Press and authored by Gary Stern and Ron Feldman, warns that not enough has been done to reduce creditors' expectations of TBTF protection.

Join the conversation today.

#EndingTBTF