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'Single Point of Entry': The Promise and Limits of the Latest Cure for Bailouts

11 Pages Posted: 31 Dec 2014 Last revised: 3 Mar 2015

John Crawford

University of California Hastings College of the Law

Date Written: December 30, 2014

Abstract

This essay explores proposed regulations meant to prevent a reoccurrence of the "Too Big to Fail" crisis of 2008. The new regulations, which are likely to go into effect in 2015, have two key features. First, a "Single Point of Entry" provision allowing regulators to more effectively and efficiently wind down failed financial institutions. Second, a heightened capital reserve provision meant to ensure that in the event of a large financial institution’s failure, losses can be absorbed entirely by private claimants without systemic consequences. The provisions are an important step in the right direction, but the ideal regulatory regime for preventing bailouts remains elusive.

Suggested Citation

Crawford, John, 'Single Point of Entry': The Promise and Limits of the Latest Cure for Bailouts (December 30, 2014). 109 Northwestern University Law Review Online 103 (2014); UC Hastings Research Paper No. 132. Available at SSRN: https://ssrn.com/abstract=2543953

John Crawford (Contact Author)

University of California Hastings College of the Law ( email )

200 McAllister Street
San Francisco, CA 94102
United States

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