Broader measures to strengthen the resilience of the entire banking system are equally important. BIS Review 112/2010  3  This will also help address excess interconnectedness and the perception that some banks are too big to fail.
But their problems were readily traceable to an old fashioned excess of debt, however acquired, as well as to opaque accounting of that leverage and lax counterparty scrutiny. Swaps and other derivatives throughout their short history, including over the past eighteen months, have been remarkably free of default.