The term “too interconnected to fail” might therefore be even more appropriate for this well-known “too big to fail” problem. The insolvency of Lehman Brothers that I mentioned earlier is a case in point.
What was lacking then was an insolvency framework that allowed the failure of this institution without  9  Issing, O (2003), Monetary and Financial Stability: Is there a Trade-off?, speech delivered at the conference on “Monetary Stability, Financial Stability and the Business Cycle”, Bank for International Settlements, Basle.