Should help only be given to firms that have a chance of surviving the crisis? Should all efforts be focussed rather on those that will be able to reboot, or should help be given to absolutely all firms, large and small? It is first necessary to look into the situation of the firms that are weakest and most vulnerable.
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.