Fed chairman Bernanke wants being big to be unprofitable
Federal Reserve chairman Ben Bernanke wants to make being too big to fail unprofitable by making big companies have tougher capital requirements, and regulation and higher insurance premiums, the FT reports.
He told Congress he was “making it less profitable to be ‘too big to fail’”.
He told he House Financial Services Committee he wants higher premiums on the largest interconnected companies, in the same way the Federal Deposit Insurance Corporation (FDIC) works for bank investments.
“The FDIC risk adjusts the premiums they charge to banks for deposit insurance. Perhaps it’s time to revisit that.”
Sick and tired
“There’s nobody more sick and tired of bail-outs than me,” said Mr Bernanke as he supported a Treasury proposal to impose onerous standards on companies and introduce a resolution regime to force creditors to take a loss in an orderly wind-down of a company.
Websites
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
