The framework for systemic institutions is now being extended to domestic banks, global insurers, and key shadow banks, such as hedge funds. When implemented, greater supervisory intensity and higher loss absorbency will ensure that the financial system is never again beholden to the fate of a single firm or group of firms.
Creating continuously open markets An important element of ending too-big-to-fail is ensuring that key markets can withstand the failure of firms. Creating continuously open core markets requires changes to the plumbing of derivative and repo markets, along with better data and tracking of exposures.