However, as I noted consolidation clearly has encouraged the creation of a number of large and increasingly complex financial institutions. Our study suggests that if such an institution became seriously distressed, consolidation and any attendant complexity might increase the chance that winding down the organization would be difficult or disorderly.
I sense a concern in the market that some other problems might be hiding somewhere. Possibly this concern is due to the way in which the later NAMA loan tranches turned out to involve more severe haircuts than the first lot.