The road to a more stable financial system How can we change this game in which some institutions are repeatedly doubling up after taking losses, while public authorities are forced to underwrite the losing streaks? There are a number of options that currently are in the works: more effective regulation and supervision, higher levels of capital, and a resolution policy for too-big-to-fail institutions.
However, one additional option used after the Great Depression still needs to be introduced: Glass-Steagell type limitations on the activities of those organizations that are otherwise too big to fail and that so dramatically affect our national and global economies. Let me take a moment to explain my views on each of these options. More effective supervision.