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Unformatted text preview: with the large institutions when there is another crisis. They say that regulators have too much discretion in deciding whether to bail out big banks. They say that large institutions still have incentives to become even larger to increase their probability of being bailed out. Questions: 1. Do you generally agree or disagree that the government has not gone far enough in regulating the banks? 2. How does requiring more bank capital reduce the risk of financial institutions? 3. Should regulators have rules about when they discipline banks and shut them down? 4. Do you believe that regulators will shut down a big bank that has lost all its capital in the future? Under what circumstances?...
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This note was uploaded on 07/02/2011 for the course FINA 465 taught by Professor Berger during the Spring '11 term at South Carolina.
- Spring '11