The Congress should create a new resolution regime, analogous to the regime currently used by the FDIC for failing banks, that would permit the government to wind down a troubled systemically important firm in a way that protects financial stability but that also  6  BIS Review 162/2009  imposes losses on shareholders and creditors of the failed firm, without costs to the taxpayer.
So far, Germany has undergone a sound process of recovery. Economic activity has almost returned to its pre-crisis level and the output gap has been closed, indicating that the recovery process is at an advanced stage. The recovery is also broader-based than in past cycles.