Dear Neel Kashkari, Your TBTF Plan Won't Work. This Will

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, presented his Bank's plan for preventing too big to fail (TBTF) here. His solution is a variant of all others. Namely, regulations to limit what banks can do. In Kashkari's case, high capital requirements for large banks, 22.5%. Like all previous attempts to end TBTF, it is doomed to fail.