Well before the Great Recession of 2008, leading economists and policy experts at the Minneapolis Fed paved the way in exploring the issue of too-big-to-fail banks. Former Bank President Gary Stern and current First Vice President Ron Feldman were pioneers in writing about the hazards of bank bailouts. The Minneapolis Fed continues to advocate for ending too big to fail, most recently with our 2018 Minneapolis Plan.
“We have repeatedly learned that it is almost impossible for governments to spot financial crises before they strike, but the data tell us that American taxpayers are still on the hook today,” Minneapolis Fed President Neel Kashkari said upon the release of the Minneapolis Plan. “After witnessing the economic devastation from the 2008 financial crisis, I am committed to working with other policymakers to strengthen our financial system and reduce the danger of a future crisis. There is no excuse for inaction, and history will judge us poorly if we so soon forget the lessons we just learned.”