35 This could be done either by varying the deposit insurance rate for the bank or by varying the required capital ratios for SIFIs to fit each bank’s risk profile and structure. This, along with measures to strengthen large banks, would reduce the likelihood of SIFI failure – but could not be relied upon to prevent all failures.
Would breaking up the largest banks end the need for future bailouts? That is not clear, for Lehman Brothers, although a large financial institution, was not one of the giants – except that it was connected with a very large number of other banks and financial institutions.