ABA to FSB: Post-Crisis Framework Has Addressed ‘Too Big to Fail’ in U.S.

As the Basel, Switzerland-based Financial Stability Board begins the process of evaluating whether post-financial crisis regulatory efforts are reducing the systemic and moral hazard risks associated with systemically important banks, the American Bankers Association said “that the prospect of TBTF with regard to banking organizations has been addressed in the United States by these regulatory actions and the banking industry’s concomitant efforts.”

ABA described the numerous and robust reforms implemented and pointed out that TBTF-related reforms in the U.S. have been “aggressive and comprehensive.” The association urged the FSB to foster further international coordination to support successful resolutions of international banking organizations while avoiding inefficiency and ensuring a level playing field. For more information, contact ABA’s Cecelia Calaby.

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Evan Sparks

Evan Sparks is editor-in-chief of the ABA Banking Journal and vice president for publications at the American Bankers Association.