Lessons for Competition Law from the Economic Crisis: The Prospect for Antitrust Responses to the 'Too-Big-To-Fail' Phenomenon
53 Pages Posted: 6 Jul 2010 Last revised: 24 May 2011
Date Written: March 15, 2010
This article examines whether, and the extent to which, antitrust law could contribute to a broader regulatory effort to control the too-big-to-fail problem. The article begins by exploring the nature of the problem. Against this backdrop, it considers antitrust policy and rules to evaluate whether antitrust might play a meaningful role. The article concludes that antitrust law, if vigorously enforced with an emphasis on avoiding too-big-to-fail problems, can be a useful public policy tool to address the problem. However, it can come nowhere near solving it or preventing recurrences of recent systemic failures.
Keywords: antitrust, too-big-to-fail, 2008 financial crisis
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