Wow...what a Mess
Speech by Charles I. Plosser, President and Chief Executive Officer, Federal Reserve Bank of Philadelphia.
Can we end too big to fail? I think we can, but I believe the current efforts may come up short. If we are to end discretionary bailouts and the associated moral hazard problems that they create, we should seek more rule-like methods to resolve failing firms, such as a new Chapter 14 bankruptcy mechanism.