Is resolution feasible?
Putting aside the actual merits of breaking up big banks (I'm actually not convinced that this is the most important priority), I often read people remarking on how imposingly difficult it would be to do. These banks are complex and they operate in dozens of countries and their businesses are intertwined. Fair enough. But that seems to work even better as an argument against resolution authority. After all, resolution is essentially breaking a bank up and selling its component parts off at high speed amid an acute crisis with creditors banging away on your door. If these things are too difficult to defuse in a time of calm, it's hard for me to see how they could be taken apart amid an emergency.
Posted by: fuse | April 29, 2010 5:07 PM | Report abuse
Posted by: JamesCody | April 29, 2010 8:01 PM | Report abuse
Posted by: sanjait | April 30, 2010 1:51 PM | Report abuse
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