The Myth of Orderly Big Bank Liquidation

On Tuesday, with some fanfare, the Bipartisan Policy Center in Washington rolled out a report, â??Too Big to Fail: The Path to a Solution.â? Focused on how to â??resolveâ? big financial companies â?? a technical term for the details of handling the failure of such institutions â?? the report is elegantly written and nicely laid out. You can either read the very short version, the short version or the long version of the same material. Unfortunately, in all three the authors fail to persuade that the problem of too-big-to-fail is fixed or can be brought under control if only we follow their recommendations.